Australia-Woolwoths the nations largest meat retailer.

AUSTRALIA-NATIONS LARGEST MEAT RETAILER.

Analysts have praised Woolworths’ 5.9pc jump in third-quarter sales, with one saying the performance of the food and liquor division was the strongest he had seen.

The retail giant posted 10pc growth in its Australian supermarkets business, suggesting consumers continue to spend money on staples even as they shirk major discretionary purchases.

Speaking on a teleconference call with chief executive Michael Luscombe, Citi analyst Craig Woolford described the supermarkets result as ’’very impressive’’, while Merrill Lynch analyst David Errington also praised the figures.

’’You’d have to go back in the memory bank to see a better result than this, particularly Australian food and liquor.

"I don’t think I’ve ever seen a better result,’’ he said.

’’Woolworths is just taking the industry to a level now that either the competition’s going to just fall away or they’re going to come back and compete very aggressively – if they can that is. "Something’s going to give here.’’

Investors appear to share the analysts’ enthusiasm, pushing Woolworths shares up in morning trade, to a six-week high. They traded up 3.3pc for the day, at $26.42.

Mr Luscombe said the supermarket sales growth came from an increase in the number of customers combined with an increase in the average spend of each customer as well as inflation.

The figures cover the 13 weeks to April 5, but Mr Luscombe said strong sales results had continued through the Easter period last weekend.

Mr Luscombe described the latest figures as a "strong overall sales result’’ and reiterated the company’s full-year sales guidance of "upper single digits" from continuing operations.

That guidance excludes petrol sales.

And the outlook is uncertain, as volatile economic factors including unemployment and consumer confidence combine with interest rates to cloud the forward view.

Adjusting for Easter, third-quarter sales were 6.5pc higher.

That tally was in line with a Reuters survey of four analysts, who tipped a 6pc growth pace on average.