Woolworths reports 16% jump in profits as ACCC prepares legal action over ‘illusory’ discounts

The Guardian World

by Catie McLeod Consumer affairs reporter

February 25, 2026

AI-Generated Deep Dive Summary

Woolworths has announced a significant 16.4% increase in net profit for its latest half-year earnings period, reaching $859 million over six months ending January 4th, up from $739 million previously. This growth was driven by expanded margins in the company's core supermarket division, despite rising concerns about higher prices affecting consumers. The figures highlight the retailer's ability to boost profitability even as shoppers face increased costs. The earnings report also comes amid scrutiny over Woolworths' discount practices, with the Australian Competition and Consumer Commission (ACCC) preparing legal action against the retailer for allegedly offering "illusory" discounts. This move by regulators raises questions about whether consumers are being misled, potentially eroding trust in retail pricing strategies. The case underscores broader concerns about transparency in business practices and consumer protection. For readers interested in global business trends and regulatory actions, this story highlights the delicate balance companies must strike between maximizing profits and maintaining consumer trust. The outcome of the ACCC's investigation could set a precedent for future business practices in Australia and beyond, influencing how discounts are marketed to customers. Meanwhile, Woolworths' financial success underlines the ongoing pressures faced by supermarket chains to adapt to changing market

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Originally published on The Guardian World on 2/25/2026