Woolworths Reports 163 Million Profit Amid Cost of Living Crisis

Woolworths reported a 163 million profit in New Zealand for the year ending June, marking an 8.8 percent increase from the previous year. New Zealand sales rose 2.5 percent to 8.49 billion, although the company noted a decline in second-half earnings as customers sought savings and the company implemented operating model changes.

During this period, the supermarket chain spent 400 million on store refreshes. Woolworths defended its financial position by citing a Commerce Commission report that ranked it 13th out of 13 supermarket operators on profitability measures. Managing director Sally Copland stated the company has absorbed certain costs, such as higher red meat prices, and used promotions and rewards schemes to shield customers from price increases.

Consumer NZ criticized the profit margins, noting that a third of New Zealanders regularly stretch their food budgets. Chief executive Jon Duffy argued that the company's ability to fund store refreshes while maintaining high profits is inappropriate during a cost-of-living crisis.