While a jump in prices is a global risk, Woolworths said the company’s Australian department-store business “should be somewhat mitigated by strong household balance sheets and high employment.”
“Our food business is predominantly a fresh business,” chief executive officer Roy Bagattini said in a Wednesday interview. “That disproportionately impacts us,” he said, alongside a shift to out-of-home food consumption post-pandemic. “We think we’re in a healthy position, with lots of firepower in the balance sheet and an opportunity to invest particularly where we see the biggest returns, which is the South African businesses,” Bagattini said. Most of the R10 billion the firm plans to spend in the next three years will be deployed in South Africa, he said.