Woolworths boss warns ‘first wave’ of food price rises coming, says customers under ‘peak stress’
Cheyanne Enciso
The West Australian
Thu, 30 April 2026 9:17AM
The chief executive of Woolworths has issued a stark warning that Australian households should brace for the 'first wave' of food price increases, describing customers as being under 'peak stress' amid the ongoing cost-of-living crisis.
Speaking at a business forum in Sydney on Wednesday, Woolworths Group CEO Amanda Bardwell said the supermarket giant is seeing significant cost pressures from suppliers, which will inevitably flow through to shelf prices in the coming months.
'We are seeing the first wave of price increases coming through from our suppliers, driven by higher input costs for energy, transport, packaging, and raw ingredients,' Ms Bardwell said. 'This is not something we can absorb entirely, and unfortunately, some of these costs will need to be passed on to customers.'
The warning comes as Australian households continue to grapple with elevated inflation, high interest rates, and stagnant wage growth. Ms Bardwell noted that consumer behaviour has shifted markedly, with more shoppers trading down to cheaper brands, buying less, and seeking out specials.
'Our customers are under peak stress right now. We see it in their shopping habits — they are more price-sensitive than ever, they are looking for value, and they are making tough choices about what goes into their trolleys,' she said.
The Woolworths boss emphasised that the company is working hard to minimise the impact on shoppers, including through its 'Prices Dropped' program and by expanding its own-brand range, which typically offers lower prices than branded alternatives.
However, she warned that the scale of cost increases coming through the supply chain means that some price rises are unavoidable. 'We are doing everything we can to keep prices as low as possible, but we have to be realistic. The cost pressures are broad-based and persistent.'
The comments have reignited debate about the pricing practices of Australia's major supermarkets, with the government recently announcing a review of the Food and Grocery Code of Conduct to ensure fair treatment of suppliers and consumers.
Consumer advocacy groups have called for greater transparency in how supermarkets set prices, arguing that the major chains have used their market power to boost profits at the expense of both farmers and shoppers.
Ms Bardwell rejected suggestions that Woolworths is profiteering, stating that the company's margins remain tight and that it is absorbing as much cost as it can. 'Our gross margins have actually compressed over the past year. We are not making more money out of this situation — we are sharing the pain,' she said.
The warning from Woolworths follows similar comments from rival Coles, which last month flagged that it expects food inflation to remain elevated for the remainder of the financial year.
Economists say the outlook for food prices remains uncertain, with global factors such as the war in Ukraine, extreme weather events in key agricultural regions, and rising energy costs all contributing to upward pressure on food prices.
For Australian households already struggling with higher mortgage repayments, rent, and utility bills, the prospect of further food price rises is a worrying development. Many are already cutting back on discretionary spending and seeking out cheaper alternatives.
'We know that for many families, the weekly grocery shop is one of the biggest bills they face,' Ms Bardwell said. 'We are committed to helping them stretch their budgets as far as possible, but we need to be honest about the challenges ahead.'
The Woolworths boss urged the government to take action on the structural cost pressures facing the food supply chain, including high energy prices and regulatory red tape, which she said are adding to the cost of doing business.
'Ultimately, the best way to keep food prices down is to address the underlying cost drivers in the economy,' she said. 'That means tackling energy costs, improving supply chain efficiency, and reducing unnecessary regulation.'
The federal government has indicated that it is monitoring the situation closely, with Treasurer Jim Chalmers saying the government is 'acutely aware' of the pressures on household budgets.
'We are doing what we can to ease the cost of living, through tax cuts, energy bill relief, and cheaper medicines,' Mr Chalmers said. 'But we also need the supermarkets to do the right thing by their customers.'
