Woolworths boss Amanda Bardwell notes ‘gradual increase’ in cost-cutting behaviour after RBA’s rate hike
Woolworths boss Amanda Bardwell says there has been a ‘gradual increase’ in the number of crunched consumers seeking out promotions since the Reserve Bank hiked interest rates this month.
Woolworths boss Amanda Bardwell says there has been a “gradual increase” in the number of crunched consumers, particularly young families and singles, seeking out promotions since the Reserve Bank hiked interest rates earlier this month.
Ms Bardwell has also observed more customers cooking at home, which she said was partly health-related but also another way to stretch household budgets.
Her comments on Wednesday come as Woolworths delivered a 3.4 per cent lift in group sales to $37.1 billion in the half-year.
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By continuing you agree to our Terms and Privacy Policy.Earlier this month, the RBA lifted the official cash rate to 3.85 per cent, marking the first monetary policy tightening in more than two years.
“I wouldn’t say we’ve seen a marked step up, but I would say just a gradual increase in the number of customers participating in promotions,” Ms Bardwell told media when asked if the central bank’s decision had already impacted consumer behaviour.
“In August, we would have been talking about the fact that we hope to see a slightly more optimistic outlook from customers.
“We started to see little early finds of that in quarter one, but I would say if we progressively moved through from October into Christmas and now, of course, into the new year, customers are firmly focused on finding ways to save. We see that most acutely in young families and young singles.”
Woolworths’ net profit grew 16.4 per cent to $859 million, but after taking into account significant items related to prior staff underpayment issues, that shrunk to $374m.
Woolworths shares were up 7.3 per cent to $33.83 in early trade.
The supermarket giant’s results come as the Australian Competition and Consumer Commission faces off against its smaller arch-rival Coles in the Federal Court during a 10-day hearing that began last Monday.
Woolworths is also facing allegations from the competition watchdog of misleading customers with its discounts, and its case will be heard in April and May.
The legal actions, launched in September 2024, came amid continued backlash from customers about higher prices for a basket of groceries.
Both Coles and Woolworths have face increased regulatory scrutiny and been forced to front multiple government inquiries into claims of profiteering.
