Australia-Recession hits supermarket sales.

AUSTRALIA-SUPERMARKT SALES FALL.

Sales growth at retail giant Woolworths slowed in the last three months of last year, with revenue growing 8.1pc for the period, down from first-quarter growth of 9.6pc.

But the sales data for the second quarter - covering the three months to January 4 - were a credible result given the economic environment, and show that consumers are continuing to make staple purchases while cutting back on discretionary items.

The company has now forecast sales from continuing operations to grow in the ’’upper single digits’’ for the full year, excluding sales from its highly volatile petrol business.

’’Factors such as inflation, fluctuating petrol prices, interest rates, rising unemployment and consumer confidence levels are very difficult to predict in the current environment,’’ the company said in a statement.