Woolworths Says 3Q Australian Food Sales Rise 5.9%, Signals Acceleration in Inflation

By David Winning

SYDNEY--Woolworths said its third-quarter food sales in Australia rose by 5.9% while signaling the Middle East conflict is already hurting customers and warning that inflationary pressure will intensify in coming months.

The supermarket chain owner said group sales of 18.1 billion Australian dollars (US$12.9 billion) in the 13 weeks through April 5 were strong.

"We are seeing early signs that the conflict in the Middle East is impacting our customers and team, many of whom were already experiencing significant cost-of-living pressures," Chief Executive Amanda Bardwell said.

Growth in Australian food sales slowed to 5.4% in March and April so far, with Woolworths highlighting signs of increased customer caution. Still, it said underlying trading momentum remained solid.

Woolworths's quarterly update came a day after the Australian Bureau of Statistics said the consumer-price index rose by 4.6% in the 12 months to March. That compared with an annual inflation rate of 3.7% in February.

Households are grappling with higher interest rates this year and recent jumps in energy prices due to the Middle East conflict, despite efforts by the government to cushion the impact. Many economists expect the acceleration in inflation to persuade the Reserve Bank of Australia to raise interest rates again in May, stretching consumer budgets further.

"While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year," Bardwell said.

Within its Australian food business, Woolworths said fresh produce sales rose by 8.0% in the third quarter. Meat and seafood sales increased by double-digit percent.

Grocery Food sales increased by 9.8%, which Woolworths said was supported by Drinks, Health & Wellness and Snacking categories that benefited from Easter falling into the quarter.

"Growth also benefited from cycling the residual impacts of industrial action in the prior year and stocking up by customers in some pantry and household items in the latter part of the quarter," Woolworths said of its third-quarter performance.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

April 29, 2026 19:01 ET (23:01 GMT)