Despite the resumption of operations, the company expects continued sales and earnings impacts in the second quarter as it works to replenish stock levels ahead of the busy Christmas trading season.

Woolworths, Australia's largest grocery retailer, announced on December 9, 2024, that it has reached a wage agreement with industrial union workers, effectively ending a 17-day strike that disrupted store services.

The strike led to an estimated $140 million loss in food sales across Victoria, the ACT, and New South Wales, with Woolworths estimating a financial impact of A$50 million to A$60 million in its Australian food segment due to lost sales.

This disruption resulted in limited availability of essential items like nappies, toilet paper, and drinks in stores.

Woolworths CEO Amanda Bardwell emphasized the company's focus on restoring stock levels to enhance customer shopping experiences during the holiday season.

In addition to the strike, Woolworths and Coles are under scrutiny for allegedly misleading consumers with fake discounts and are currently facing an inquiry by the competition watchdog regarding their pricing strategies.

Following the strike news, Woolworths shares increased by 1.2% to $30.28 by 10am on Monday.

The company anticipates ongoing challenges in sales and profits as it navigates stock replenishment efforts.

The agreement, endorsed by the United Workers Union, guarantees team members an approximate 11% wage increase over three years, although this falls short of the union's initial demand for a 25% raise.

Over 1,500 warehouse workers initiated the strike on November 21, protesting stagnant wages despite Woolworths' rising profits and concerns over safety conditions.

Operations have since resumed at Woolworths' distribution centers in Victoria and New South Wales following the conclusion of the industrial action.

As of December 8, Woolworths reported that sales losses had risen by $90 million since their last update, which initially estimated a $50 million impact.