Woolworths surging

Australia's biggest supermarket operator, Woolworths, says first-quarter sales from its key food and liquor division grew 5.7 per cent, in line with guidance it gave earlier this month.

The critical division's like-for-like sales, which strip out new stores, rose 2.8 per cent, also in line with the guidance but below what investors have come to expect from the food, liquor, electronics and general merchandise retailer.

Woolworths is locked in battle with Coles Myer, which has returned smaller supermarket sales than Woolworths despite being the nation's biggest overall retailer.