Australian grocer Woolworths Group said heavy rain may keep squeezing supply of farm-based staples, including potato chips, as soaring shelf prices contributed to a decline in first-quarter food sales, according to a report by European Supermarket Magazine.
The grocer’s latest trading update underscores the impact of a third La Nina weather pattern in three years which has fuelled inflation at Woolworths and smaller rival Coles Group, seen as economy bellweathers since they ring up two-thirds of Australian grocery sales.
It also shows Woolworths‘ grocery dominance being challenged: its September quarter sales showed higher inflation than at Coles, which reported results on October 26, while Woolworths food sales went backwards compared to higher supermarket sales at Coles.
Source: European Supermarket Magazine. Read the full story here
Image: Courtesy Woolworths Group