Woolworths Faces $190 Million Profit Loss from Strikes

Woolworths has taken a rare hit to its profits, with a $190 million loss in its half-year results. For the six months leading up to January 5, the supermarket giant reported a 21% drop in its net profit, which came to $739 million.

The loss was largely blamed on industrial action that led to a 13-day shutdown of its warehouses, disrupting the supply chain. Other factors included rising store wages and a dip in brand loyalty.

CEO Amanda Bardwell acknowledged the challenge, saying, "The team has worked incredibly hard to recover from the disruptions caused by the industrial action in November and December." Despite the setback, Bardwell said they came to an agreement that would help with long-term productivity and competitiveness.

In Victoria, sales haven’t fully bounced back yet, but availability and customer satisfaction are gradually returning to pre-disruption levels. However, the cost-of-living crisis continues to weigh on profits, as more customers opt for budget alternatives. Woolworths also pointed out that livestock costs for red meat may add to the strain in the first half of 2025.

If it weren’t for the industrial action, grocery sales would have only dropped by 5%. On top of this, the supermarket faced a one-off $95 million hit to profits in the Australian Food segment.

Looking ahead, Woolworths plans to focus on offering more value to customers through promotions and clearer pricing to attract more shoppers.