Woolworths chief executive Brad Banducci admits customers struggling to make ... trends now
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Woolworths says the last quarter was tough for both sales and customers - and it expects the challenging trading conditions to last another 12 months due to sticky inflation and increased competition.
The supermarket giant had seen a noticeable shift in customer sentiment and shopping behaviours since Christmas as customers adjusted their budgets, Woolworths chief executive Brad Banducci said on Thursday.
'Customers across all segments (are) telling us they're struggling to make ends meet given the material increase in mortgages, rent, utilities, insurance and other key household expenditures,' he said.
Mr Banducci added that a big increase in rents since January and February had particularly affected younger singles and couples.
Their spending on what Woolworths calls 'conscious products' - such as environmentally friendly or fair trade goods - had suddenly dropped significantly.
Woolworths says the last quarter was tough for both sales and customers - and it expects the challenging trading conditions to last another 12 months due to sticky inflation and increased competition. A woman is pictured in a supermarket
Customers have also been shopping more frequently but buying slightly less each time, he said.
They have been looking for more ways to save, buying more own brands and more products on promotion.
Mr Banducci said customers had been particularly attuned to promotions for higher-value non-food items such as household, pet and personal care products.
Shoppers have been buying those items from Woolworths'
