Australia’s largest retailer Woolworths said strikes at its distribution centres (DCs) in New South Wales and Victoria had cost it $140 million in sales and up to $60 million in earnings.
Woolworths (ASX: WOW) said the four DCs had reopened after the United Workers Union endorsed the company’s individual enterprise agreement on 7 December, ending 17 days of industrial action which led to stock shortages in some stores.
The company said Australian food sales have been negatively impacted by about $140 million up to 8 December, including an additional $90 million since the previous update on 3 December.
The one-off negative impact on Australian food earnings before interest and tax (EBIT) was about $50 million to $60 million, reflecting lost sales, additional transport and supply chain contingency costs and elevated levels of stock loss.
Woolworths, colloquially known as Woolies, expected further sales and earnings impacts in the second quarter of the 2025 financial year due to the time and effort needed to rebuild stock at the DCs and stores ahead of Christmas.
The full extent was unknown and it would provide a comprehensive update at its half-year results in February.
CEO Amanda Bardwell said Woolworths was moving products out of the DCs and onto supermarket shelves as quickly as possible and fully focused on restoring stock levels and getting products to stores.
“We would once again like to apologise to our customers for this disruption and thank them for their support. We know it has been frustrating shopping in our stores and online in recent weeks in Victoria, the ACT and parts of NSW. I would like to sincerely thank them for their understanding and patience,” Bardwell said in an ASX announcement.
Woolworths shares closed on Monday at $30.24, up 32 cents (1.07%), capitalising it at $36.94 billion.