What will Woolworths’ profit loss mean for your shopping trolley? 6



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Woolworths has lost $972.7 million throughout the first half of our financial year, and now the struggling conglomerate has been forced to appoint a new CEO.

What do these changes mean for your shopping trolley though? Will we pay for the price for Woolworths’ plummeting profits?

Masters was the straw that broke the proverbial camel’s back, with the hardware chain hemorrhaging between $2 and 3 billion from Woolworths Limited.

This massive failure meant that Woolworths’ overall profits fell by a whopping 176% from June to December 2015 alone. Profits aren’t expected to turn around anytime soon, either.

According to The Australian, Woolies is “not expecting a significant improvement in like-for-like store sales at its core Australian supermarkets” this financial year.

In fact, supermarket competition is likely to heat up, which is probably a good thing for everyday shoppers like us.

The Australian reports that Woolworths will now pour “millions of dollars into investing in lower prices in a bid to attract shoppers”.

“Woolworths saw an average price reduction of 2.1 per cent in food and liquor during the (last half financial) year”. This could be an effort to compete with cheaper supermarkets, like Aldi and Costco.

New CEO Brad Banducci is reported to have “a total commitment to customers”, so Woolworths can focus on rebuilding its bottom line through improved service.

“We have significantly invested in price, service and customer experience in Australian supermarkets”, Woolworths spokespersons said.

“Despite the financial performance, we are making progress in the rebuilding of Woolworths”, the grocery giant added.

Will a focus on customer service be enough to lure you back into Woolworths? Do you shop around for the best supermarket prices? Which supermarket do you prefer?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Well you could start by selling us fruit that hasn’t been frozen for a season and give us real fresh fruit that’s not rock hard today and rotten inside after two days, that would bring me back.

    3 REPLY
    • That’s exactly why I loathe Woolworths. Their ‘fresh food people’ slogan is a farce. Fruit is often rotting within a couple of days of purchase. NOT GOOD ENOUGH!

      1 REPLY
    • I agree. Also give us fruit & vegetables that are Australian grown to support our farmers. How about some Aussie seafood as well. Who on earth wants Vietnamese prawns & Phillipines pineapple when we have the resources here to produce these.
      Ditch the new rewards system & the Collector cards for kids. As soon as the new rewards system came in the milk I usually buy went up 85c.
      Less self serve & more staff.
      I see the CEO got paid $10 million for failing. Wish someone would pay me every time I fail.

    • I agree with you Brian. There’s no fresh natural juice in such fruit, there’s no nutrition, it’s like eating cardboard and the price is a rip-off!

      1 REPLY
      • Don’t buy fruit at supermarkets then.We buy from local greengrocer and produce is great.

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