Woolworths has warned that net profits will fall as much as 35 per cent to between $900 million and $1 billion in the December half as it invests more than $500 million into grocery prices and service to reverse declining sales.
The new profit guidance was issued on Thursday after Woolworths reported further weakness in sales at its earnings engine room, Australian food and liquor, and a sharp drop in sales in its general merchandise business in the September quarter.
Same-store Australian food and liquor sales fell for the second consecutive quarter – down 1 per cent in the three months ended October 4 – as Woolworths struggled to reverse customer perceptions that its prices are higher than Coles. Sydney Morning Herald – Read more…
The new profit guidance was issued on Thursday after Woolworths reported further weakness in sales at its earnings engine room, Australian food and liquor, and a sharp drop in sales in its general merchandise business in the September quarter.
Same-store Australian food and liquor sales fell for the second consecutive quarter – down 1 per cent in the three months ended October 4 – as Woolworths struggled to reverse customer perceptions that its prices are higher than Coles. Sydney Morning Herald – Read more…