BUSINESS
Woolies warns of inflation hit as Middle East tensions bite
Woolworths says it has so far weathered the oil price storm fuelled by war in the Middle East but warns there are early signs customers are turning more cautious and suppliers are facing increased inflationary pressures.
The grocery giant has also moved to rein in earnings expectations for the full financial year amid the clouded outlook as it aims to keep a lid on prices and lure less-confident shoppers through the doors.
Chief executive Amanda Bardwell said the prolonged stand-off between the US and Iran after attacks began on February 28 was creating greater uncertainty for customers, suppliers and staff at a time when cost-of-living pressures are already acute.
“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,” Ms Bardwell said.