In the 27 weeks to January 1, Woolworths recorded first half sales growth of 5.6 per cent from the previous corresponding period in its supermarket division.

Sales growth was 16.4 per cent in its home improvement division.

"The first half result was solid considering the ongoing headwinds facing the retail sector with subdued consumer confidence and significant deflation along with the change agenda we are driving through our business,'' Chief executive Grant O'Brien said in a statement.