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Woolworths has faced several challenges, including increased competition from both traditional supermarkets and online retailers, which has pressured profit margins. Additionally, supply chain disruptions, particularly during the COVID-19 pandemic, have impacted inventory levels and product availability. The company has also dealt with issues related to sustainability and labor practices, as consumers increasingly demand ethical sourcing and transparency. Lastly, adapting to changing consumer preferences, such as a shift towards online shopping, has required significant investment in digital infrastructure.
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