Woolworths
(ASX:WOW) has warned that further interest rate gains, which look highly likely next week, will prompt consumers to cut spending at a time when retailers are battling to grow sales and protect profit margins.
Woolworths CEO Michael Luscombe says rate rises aren’t good for consumers, and with more on the cards, 2010 is likely to be a challenging year.
His comments follow the release of a report, showing the consumer price index rose more than some economists forecast.
Woolworths achieved a $1.8 billion net profit in 2009.
