Woolworths Faces Profit Decline Amid Cost-of-Living Challenges

The supermarket giant adjusts to consumer demand for cheaper products while grappling with legal and competitive pressures.

Woolworths' profits are expected to drop by up to $115 million in the first half of the financial year as consumers opt for cheaper products.
The Australian Competition and Consumer Commission has accused Woolworths and Coles of misleading customers with false discounts, impacting their reputations.
Shareholders reacted to Woolworths' profit warning by sending its share price down nearly 6%, with a total drop of 15% since August.
Chief Executive Amanda Bardwell highlights the importance of rebuilding customer trust amid a challenging economic environment.
With increased competition from Aldi and Amazon, Woolworths is seeing a shift in consumer behavior towards online shopping and house brand products.