Woolies wins the grocery wars, lifts sales and profits

Woolworths has performed better than expected over the past year, lifting sales and profits. (Susie Dodds/AAP PHOTOS)

Australia's biggest grocery store chain has outperformed its leading rival over the past financial year, and a hugely successful promotion involving tiny rubber figurines has helped it keep the momentum going.

Woolworths supermarket sales rose 4.6 per cent to $53.9 billion in the year to June 28, the supermarket giant reported on Wednesday, while Coles supermarket sales grew by 3.7 per cent to $41.5 billion in the same period.