Woolies' warning
Interest rate cuts might be just months away. But Woolworths' profit warning today proves the real cost-of-living crisis is far from over.
The final mile of the inflation fight was always going to be tough, but comments from the nation’s largest grocery retailer Woolworths suggest it could be even worse than many had feared.
Chief executive Amanda Bardwell’s update to the market on Wednesday cut straight to the chase. “Our customers remain under real cost-of-living pressure,” it began. The retailer downgraded its earnings forecasts for the current half, but it was Bardwell’s later remark that rough conditions would persist that really spooked the market, triggering a 6% slide in its share price.
"Looking ahead, we expect customers to remain extremely value-conscious with cost-of-living pressures to continue for the remainder of F25," Bardwell said.
This sentiment was echoed by Bega Cheese CEO Peter Findlay, who also warned that he expected the trend of value-focused shoppers to persist throughout 2025.
