Comments attributable to Woolworths Group CEO Brad Banducci
“We are very aware of the pressures facing many Australian families.
“We welcome the opportunity to explain to the senate how we are working to balance the needs of our customers, our team and our suppliers in the context of economy-wide inflationary pressure.
“As we have done at several inquiries this year, we will openly and constructively assist the parliament with its work on this important topic.
“We are proud to directly employ 180,000 team members in Australia and support the livelihoods of 18,000 suppliers in the communities we serve.”
Background
Australian food and grocery inflation (4.8%) is lower than headline inflation (CPI) (5.4%) according to the last quarterly ABS figures (July to September 2023). Food inflation across the OECD was reported as 8.1% in September 2023.
Woolworths offers 6,000 specials every week, has dropped the price of all its standard lamb cuts by 20 per cent, as well as dropping the price of 400 products for summer.
In October, Woolworths lowered the price of its half leg ham to $8/kg. This is the lowest price on ham for the Christmas table since 2014.
Woolworths’ Fruit & Vegetable and Meat categories are in deflation, with prices falling.
This year, senior Woolworths Group executives have appeared before three parliamentary inquiries touching on the topics of cost of living, food security and pricing:
Senate Select Committee on the cost of living;
House Standing Committee on Agriculture’s Inquiry into food security in Australia; and
House Standing Committee on Economics’ Inquiry into promoting economic dynamism, competition and business formation.
Woolworths Group’s margins were lower in the Financial Year (FY) 2023 than they were ten years ago (FY 2014), in contrast with ABS estimates of margin growth across the broader economy.
