Australian shoppers are feeling the impact of higher petrol prices on top of ongoing cost-of-living pressures, the country’s biggest supermarket chain warns.
Woolworths, which claims close to a third share of the market through almost 1000 stores, on Thursday reported a 4.5 per cent lift in total sales for its third quarter to $18.1 billion.
Most of the revenue was driven by food sales, which rose almost six per cent to $13.8 billion.
But the outlook for fourth-quarter earnings is less clear, particularly if the Middle East conflict drags on, chief executive Amanda Bardwell signalled.
“We are seeing early signs that the conflict in the Middle East is impacting our customers and team, many of whom were already experiencing significant cost-of-living pressures,” Ms Bardwell said.
“Our primary focus since March has been to take the necessary steps across the group to minimise the impact on customers.”
Since the US attacked Iran on February 28, oil prices have soared after the Strait of Hormuz, a key shipping lane for about 20 per cent of the world’s crude, was blocked.
The upward pressure on the price of Brent crude, which on Thursday hit $US120 a barrel, has pushed up the cost of petrol and diesel used by consumers and businesses.
“The group has mobilised rapidly to respond to this environment and we are engaging regularly with government as their response plans are developed,” Ms Bardwell said, referring to the push to secure fuel supplies for Australia.
“It is still too early to predict with any certainty the direct and indirect impacts on fiscal 2027 from the conflict in the Middle East and how this will impact customer shopping behaviours.”
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