Woolworths Group chief executive Amanda Bardwell has apologised to customers impacted by supply chain issues on the east coast, which is leaving freezers devoid of stock in some stores.
Business News understands this stems from industrial action by around 1500 United Workers Union workers, which began indefinite strike action on November 21 at four of Woolworths’ distribution centres across both Victoria and New South Wales.
Woolworths told the market that its Australian food sales had been impacted by around $50 million up until yesterday – and said until the industrial action was resolved, this figure would likely grow.
The company said this event was also not factored into its initial earnings for its Australian food portfolio within the first half of the 2025 financial year.
Negotiations between Woolworth and the UWU have been ongoing over the past four months, with the UWU seeking a pay increases of more than 25 per cent over three years for staff at the distribution sites.
“To minimise the customer impact from this industrial action, Woolworths Group has deployed a range of contingency plans including building inventory at stores, leveraging the wider distribution network and some suppliers delivering direct to stores,” Woolworths said.
“However due to the extended disruption, some Woolworths supermarkets in Victoria, ACT and NSW are experiencing stock flow limitations on some lines, impacting product availability of ambient, chilled and freezer lines for customers.”
Woolworths shares last changed hands at $30.52.
