By Mike Cherney

SYDNEY--Woolworths Group Ltd. reported strong sales in the fiscal first quarter as consumers spent more time at home amid the coronavirus pandemic, but the Australian grocery giant said growth had slowed in the last few weeks.

Woolworths said total group sales were 17.9 billion Australian dollars (US$12.8 billion) in the fiscal first quarter, which ended Oct. 4. Total sales in its largest unit, Australian food, rose 13% to A$12 billion. On a same-store basis, Australian food sales rose 11.5%.

Looking ahead, the company said it expected elevated sales and costs to continue through the rest of the calendar year. However, it said that same-store Australian food sales growth had moderated in October and was in the high single digits.

Total coronavirus-related costs, such as cleaning and safety equipment for staff, totaled 1% of sales in the first quarter, down from 2% in the prior quarter.

Elsewhere, the company said same-store New Zealand food sales in local currency rose about 6% in the fiscal first quarter, same-store Big W sales rose 22% and same-store Endeavour Drinks sales rose 20%. Total sales in its hotels business fell 33%, reflecting the impact of lockdowns in Victoria state and restrictions in other places, but Woolworths said that unit was still profitable in the quarter.

One bright spot was online sales, which rose 87% in the quarter to A$1.5 billion across the company.

Woolworths also said that it paid A$164 million in the quarter to make up for previously announced salary shortfalls, bringing the company's total payments to A$281 million. By the end of the fiscal first half, Woolworths said it expects that payments covering six years will be mostly completed.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

11-03-20 1725ET