Woolworths records $1.6 billion profit but thefts rise

Supermarket giant Woolworths has posted a $1.6 billion full-year profit but warned the cost-of-living crisis continues to impact customers.

The retailer reported today sales for the 2023 financial year rose by 5.7 per cent to $64.3 billion, while net profit increased by 4.6 per cent to $1.6 billion.

Woolworths chief executive Brad Banducci said shoppers remained cautious in their spending habits despite the company's return to stability after the disruption of the COVID-19 pandemic.

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"Despite the more stable environment, our overall customer experience was inconsistent, impacted by lingering supply chain challenges, and more recently by the impact of inflation," he said.

Food sales rose 5 per cent during the year to $48 billion on the back of inflation.

But Woolworths said it experienced higher levels of theft which led to stock losses.

It has launched Scan Assist technology across 474 supermarkets to improve the accuracy of scanning.

Increased investment in the supermarket chain's Everyday Rewards scheme also impacted its margins.

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Sales at Woolworths' discount department store Big W rose by 8 per cent to $4.8 billion, but the stores experienced a slowdown in spending as sales dipped by 6 per cent for the first weeks of the 2024 financial year.

The company said trading conditions for Big W "changed dramatically" over the past weeks.