Woolworths food sales lifted 1.5% to $12.6bn in the quarter to March 2024, behind rival Coles at 5.1%. Food inflation in the March quarter fell 0.2%, compared with an increase of 5.8% for the same time last year. 

Outgoing CEO Brad Banducci warned trading conditions for Woolworths will be challenging for the next 12 months and costs would not be deflationary, ruling out substantial cuts to retail prices.

Banducci said higher wages and energy costs were keeping shelf prices elevated. Shoppers have changed their behaviour, choosing Coles over Woolworths due to Coles’ Pokemon collectables promotion and specials at Amazon, Costco and Bunnings.  E&P analyst Phil Kimber said Coles and Woolworths were trading fortunes in customer collectables promotions, amplified by the fact Woolies had a promotion at the same time in 2023..