Retail giant Woolworths has beat expectations for its full year results, with food and liquor sales rising 4.3% to $36 billion and total sales overall rising 4.7%, despite warning of future trouble for the industry.
“This result has been achieved in a very challenging year for retail which saw continuing deflationary effects, the disruption caused by natural disasters, increased consumer caution and higher domestic savings rates,” said chief executive Michael Luscombe.
“This outcome reflects our ability to adapt and perform in all economic environments.”
The result comes after some retailers, including David Jones and Country Road, have announced lower profit and sales results.
However, Woolworths has noted some weakness, with sales in the general merchandise division only rising by 0.7% to $6 billion. Sales in Big W have actually fallen by 0.8% to $4.1 billion.
It also says prices have fallen 3.6% in the second half, with a 4.3% fall in the first half as well. Both Woolworths and Coles have engaged in aggressive cost-cutting.
News Limited will answer to Australia Parliament about the growing scope of the British phone hacking scandal, Prime Minister Julia Gillard has announced.
“When there has been a major discussion overseas, when people have seen telephones hacked into, when people have seen individuals grieving have to deal with all of this, then I do think that causes us to ask some questions here in our country, some questions about News Ltd here, and obviously News Ltd has got a responsibility to answer those questions when they’re asked,” Gillard told reporters this morning, according to Reuters.
The comments come after both Rupert and James Murdoch attended a British Parliamentary inquiry into the phone-hacking scandal, although both executive dismissed responsibility for the hackings.
The Australian sharemarket has risen over 1% higher this morning after solid leads from the US where stocks rose on hopes that President Barack Obama is able to broker a new deal with legislators over a plan to raise the country’s debt ceiling and avoid default.
The benchmark S&P/ASX200 index was 1.68% to 75 points to 4543.3 at 12.10 AEST, while the Australian dollar rose to $US1.07c.
ANZ shares rose 2.21% to $21.23, while Commonwealth Bank shares rose 1.96% to $49.50. AMP shares gained 0.65% to $4.65 as Westpac rose 2.66% to $21.23.
In the United States, the Dow Jones Industrial Average rose 202 points or 1.63% to 12,587.27.
Airline giant Qantas has said it is looking for more partnerships with airlines in order to expand and improve its international businesses.
“Globalisation requires change. We can’t just change a few parts of our business, we have to make every part of our business efficient and in touch with the new realities,” chief executive Alan Joyce told a conference this morning.
Joyce has said before the airline’s international business is suffering millions in losses and needs to be restructured in order to survive.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
