Overview Key strengths Key risks Strong market position in the concentrated supermarket sector in Australia and New Zealand. Expected subdued sales over the next 12 months from vibrant competition, moderating inflation, and cost-of-living pressures affecting consumers' discretionary spend. Predominant exposure to the resilient nondiscretionary food and retail staples segments. Earnings pressure from elevated operational costs and challenges within the New Zealand Food and BIG W divisions. Hard-to-replicate Australian supermarket network, which creates significant barriers to entry. Large, ongoing capital expenditure (capex) requirements. Supportive financial policy with a commitment to an investment-grade rating. Heightened political scrutiny amid regulatory inquiries. We expect moderating inflation across food-based products to continue, which began around the end of calendar 2023, and more strident competition will
