Questions stack up as Woolworths faces shareholder showdown
Embattled supermarket giant Woolworths will face questions over dodgy discount schemes, price gouging and environmentally dubious farming practices at its yearly shareholder grilling.
It annual general meeting on Thursday will be the first for new chief executive Amanda Bardwell after her predecessor, Brad Banducci, resigned in February after a scathing senate inquiry report criticising pricing practices of Woolworths and rival Coles.
It has been a damaging year for the reputation of the big two chains, who dominate 67 per cent of the supermarket sector, with Aldi next behind at just nine per cent.
The competition watchdog launched legal action against Coles and Woolworths in September, accusing them of violating consumer law by misleading shoppers on hundreds of popular supermarket items with their “Down Down” and “Prices Dropped” campaigns.
Woolworths has been in the firing line of 10 government inquiries, with Labor accusing the chains of buying land to stop competitors setting up shop and hiking prices for less product value.
The grocery chain revealed on Wednesday profits had taken a hit, with the company likely to make $1.48 billion in the December half, down from $1.6 billion a year earlier.
The supermarket chain says many compounding factors have contributed to the challenging year faced by the sector.
“Consumers are increasingly feeling pressured, largely due to the increase in rents and mortgages… this has led to increased media and political focus on the grocery business,” the company said in a pre-AGM statement.
“Polarisation in community expectations on the role of business in social issues are also playing out.”
The board is also set to be questioned about salmon farming practices, backed by former federal Greens leader Bob Brown’s foundation.
The campaign, organised by group Neighbours of Fish Farming, ran simultaneous protests across the country on Wednesday and called on Woolworths to vote against stocking salmon from Macquarie Harbour in Tasmania – home to the endangered Maugean skate.
Campaigner Jess Coughlan was in Sydney for the protest and will represent the group at the supermarket’s AGM on Thursday.
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“Shoppers were shocked to hear that they had no idea where their salmon was coming from, or the devastation it was causing in Tasmanian waterways,” Coughlan said.
“Many pledge to stop buying salmon.”
Woolworths has vowed to vote down the motion to cease selling the product, saying more information is needed on the environmental impacts.
Woolworths’ share price tumbled 5.8 per cent early on Wednesday after its trading update.
