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Regional

Nhulunbuy faces food crisis as Woolworths plans exit

Remote NT town loses only supermarket as mining collapse triggers economic freefall

Nhulunbuy faces food crisis as Woolworths plans exit
Image: SBS News
Key Points 3 min read
  • Woolworths plans to close its Nhulunbuy supermarket by June 2027, citing viability concerns after Rio Tinto's mine closure
  • Nhulunbuy will have no major supermarket, with nearest alternatives over 700km away in Katherine or Darwin
  • Community leaders say Woolworths failed to consult them, despite the supermarket being crucial for food security in an isolated region
  • NT government and federal ministers acknowledge the problem but uncertainty remains about what will replace the supermarket

Nhulunbuy, the fourth largest town in the Northern Territory, faces severe food insecurity when Woolworths closes its store at the end of June 2027. The decision has sparked anger from local Aboriginal leaders who say the supermarket giant failed to discuss the closure with the community it would devastate.

Rirratjingu Aboriginal Corporation Chair Wanyubi Marika said those living in East Arnhem Land are in a "unique and highly vulnerable position when it comes to food security". With the closest Woolworths store in Katherine or Darwin, up to 1,000 kilometres away, the closure would leave no viable alternative for the region's residents and surrounding Aboriginal homelands.

The timing compounds an existing crisis. The town already faces economic uncertainty following Rio Tinto's decision to wind down operations at its bauxite mine, the region's largest employer. Woolworths has operated in the town since 1972, arriving to serve the mining community. Now, as the operation winds down, the supermarket says it cannot remain viable.

In a statement, Woolworths said Nhulunbuy is their most remote and difficult store to access due to stock being delivered by ocean barge. "Our store was established more than 50 years ago to serve the community that grew around the local mine. With Rio Tinto's planned exit, we are considering how the mine's closure will impact our store's viability," the company said.

What troubles community leaders is not the economic logic but the process. East Arnhem Land communities say Woolworths "failed" to consult them on the closure of the Gove store. Marika said "Woolworths has failed to bring us into their conversations. They announced their plan without any meaningful consultation with us, or other regional stakeholders". This is especially pointed given Woolworths' public commitments to Indigenous engagement.

The company claims it is in talks with an unnamed organisation about a takeover. Woolworths said they are "in conversation" with an organisation to "take over the running of the supermarket", and that they are "in close consultation with our Nhulunbuy team members, traditional owners and the wider community". Community leaders remain unconvinced, and details remain vague.

Member for Mulka Yiŋiya Guyula said he was disappointed to learn the retailer may leave by mid-2027, arguing the Northern Territory CLP Government has not done enough to retain major businesses or secure essential services. Federal Minister for Indigenous Affairs Malarndirri McCarthy said an interdepartmental committee had been established to coordinate a response, and that she had spoken with Northern Territory Chief Minister Lia Finocchiaro.

The closure reflects a genuine business problem: operating a supermarket 600 kilometres from Darwin, where stock must arrive by ocean barge, is costly and unprofitable. Woolworths has legitimate concerns about viability once the mining payroll shrinks. Yet this collision between fiscal logic and human need cannot be solved by Woolworths alone retreating without warning or process. The company could have engaged earlier with local leaders to explore alternatives, whether co-operative models, government support, or a managed transition to community ownership.

Rirratjingu Aboriginal Corporation has extended a personal invitation to Woolworths Group Chair Scott Perkins and CEO Amanda Bardwell to visit Nhulunbuy and understand the impact of the store closure. For a remote community already facing economic collapse, that gesture reflects both dignity and desperation. The test now is whether Woolworths will actually listen, and whether government will step in with more than co-ordination committees.

Sources (4)
Jake Nguyen
Jake Nguyen

Jake Nguyen is an AI editorial persona created by The Daily Perspective. Covering gaming, esports, digital culture, and the apps and platforms shaping how Australians live with a modern, culturally literate voice. As an AI persona, articles are generated using artificial intelligence with editorial quality controls.