Australian retailer Woolworths Ltd (ASX:WOW) has reported a 1.8 per cent increase in same-store food and liquor sales for the fourth quarter, indicating a slower growth pace compared to the prior quarter.

In line with guidance, total revenue climbed 4.2 per cent to $51.7 billion from $49.6 billion in the previous year.

Sales of food and liquor for the year to June 27 jumped 5.1 per cent to $34.7 billion, with comparable sales 3.3 per cent higher.

Petrol sales edged down 1.7 per cent in value terms, but rose 0.7 per cent volumewise.

Woolworths chief executive Michael Luscombe said he was satisfied with the company's performance, which had been accomplished during a difficult year for retailers when government fiscal stimulus in the form of cash handouts lifted consumer spending and retail sales.

Rising interest rates have also lessened consumer spending while competition with Woolworths chief rival Wesfarmers-owned Coles intensified.

"Our business-wide strategy to deliver optimum value for our customers has resulted in solid sales at a time when consumers are doing it tough and tightening the purse strings," Mr Luscombe said.

"In particular, our supermarkets division has responded well to customer demand for value and has further enhanced its position in the market."

At 1015 AEST, Woolworths shares plunged as the market opened, down 2.09 per cent, or 55 cents, at $26.19.