Christmas grocery pinch looms as millions struggle to make ends meet
Christmas is still eight weeks away, but millions of Australians are already working out how to make it through the festive season without blowing the family budget.
Speaking at the company’s annual general meeting on Thursday, Woolworths Group chief executive Amanda Bardwell warned that households are tightening their belts in response to relentless cost-of-living pressures.
Weeks out from Christmas, millions of Australians are already planning how to avoid overspending. iStock
“We know customers remain under significant pressure. Four in 10 Australians tell us they often struggle to make ends meet,” Bardwell said.
Bardwell noted that essential expenses such as fuel, electricity, and insurance continue to outpace food prices, while repeated interest rate hikes have eaten into discretionary budgets.
For an average mortgage-holding Australian family, groceries account for roughly 10 per cent of total household spending.
“Many customers are planning earlier to spread the cost, and many Everyday Rewards members are saving their rewards dollars for Christmas,” Bardwell said.
Woolworths CEO Amanda Bardwell addresses shareholders at the group’s annual general meeting. Supplied
“Customers are protecting the food shop but making careful choices around it. They are choosing more own brands and using Everyday Rewards and specials to stretch the budget.”
Despite the gloomy consumer backdrop, Woolworths’ food sales rose 6.9 per cent to $14.8 billion in the first quarter of FY26, alongside a 20.2 per cent jump in online grocery sales.
The company attributed the performance to strong value campaigns, including the Disney Ooshies collectibles program.
“Importantly, growth remained strong throughout the quarter,” Bardwell said.
“Customers responded to the value in our stores, and we saw more items and more transactions than last year.”
The pinch stretches well beyond the supermarket aisles.
Some of the nation’s biggest retailers are reporting sluggish sales heading into Black Friday and Christmas, including the parent companies behind Bunnings, Kmart, JB Hi-Fi, Rebel Sport, and BCF.
Investors responded swiftly to the retail updates, with Wesfarmers shedding 4.9 per cent to $73.36 in early Thursday trade, Super Retail losing 3 per cent to $12.60, and JB Hi-Fi dropping 1.39 per cent to $70.77.
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