Woolworths is ramping up its supply chain operations and bolstering its workforce to ensure shelves are stocked with essential Christmas and holiday groceries. However, the retailer has acknowledged that full recovery from the recent industrial action may not be achieved until the new year.
Australia’s largest supermarket chain has informed its food and grocery suppliers that “key food lines for Christmas” will be prioritised. This includes increasing delivery volumes, deploying additional staff, and extending working hours to replenish empty shelves, particularly in Victoria and southern New South Wales, where stores were heavily impacted by the recent strikes at its warehouses.
With Christmas and New Year being a critical trading period, Woolworths is focusing on household staples and packaged foods, such as cooking ingredients, snacks, sauces, and drinks. The supermarket anticipates that cost-of-living pressures will see more families opting to prepare meals at home, making well-stocked shelves a priority.
In a letter to suppliers, Woolworths’ Chief Commercial Officer, Paul Harker, detailed the retailer’s recovery efforts. He acknowledged the significant disruptions caused by the strikes but assured suppliers that improvements are already being seen, with recovery efforts extending into January to support the “Back-to-School” season.
“Our immediate focus is delivering a great experience for our customers this Christmas,” Mr Harker stated. “While the path to full recovery will take time, we are prioritising essential food items to ensure a successful festive season.”
The industrial action, which lasted nearly three weeks, disrupted Woolworths’ operations, leaving shelves empty as union picket lines blocked food and grocery supplies at four key distribution centres. Earlier this month, Woolworths revealed the strike had cost the business an estimated $140 million in lost sales, significantly higher than its initial forecast of $50 million. The action is also expected to reduce earnings for its core Australian supermarket division by up to $60 million.
Following negotiations, Woolworths reached an agreement with the United Workers Union, granting an 11 per cent pay rise over three years – considerably less than the union’s original demand for a 25 per cent increase. Warehouse employees have now voted to approve the new enterprise agreements, with updated pay rates and benefits set to be delivered before Christmas.
To address ongoing challenges and prepare for the festive rush, Woolworths has introduced new operational measures, including extended warehouse hours, increased staffing, and additional processing capacity. The retailer has also worked with state and local governments to gain flexibility on delivery times, though this option has been used sparingly.
In a statement, Mr Harker highlighted the progress made since the industrial action concluded. “Our stores in Victoria, the ACT, and southern NSW are now well-stocked, with availability nearing 100 per cent. Across the country, we have everything customers need for Christmas, including fresh produce, meats, seafood, festive treats, and essentials,” he said.
Since reopening the affected distribution centres, Woolworths has processed over 7.5 million cartons of groceries and dispatched more than 3,500 truckloads to stores, ensuring shelves are ready for the holiday season.
The strike’s ripple effects were felt across the $120 billion supermarket industry. Competitor Coles experienced increased demand as customers turned to alternative retailers. In response, Coles ramped up its warehouse operations, deployed additional staff, and opened extra checkouts to manage the surge in traffic.
As Woolworths continues its recovery efforts, it remains committed to meeting customer expectations during the busiest period of the year. Despite recent challenges, the supermarket giant is determined to provide a seamless shopping experience for families across Australia this festive season.
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