Woolworths to declare $1.5b writeoff on NZ stores

Woolworths' New Zealand business had a difficult first half with earnings tipped to be well down. (Diego Fedele/AAP PHOTOS)

Woolworths Group says it will declare a $NZ1.6 billion ($A1.5 billion) non-cash impairment on the value of its 191 New Zealand supermarkets following slowing sales there.

Woolworths says its New Zealand food business had a challenging first half, with earnings expected to be down 42 per cent to $NZ71 million ($A65.7 million), which prompted the review of the carrying value of the $NZ2.3 billion ($A2.1 billion) of goodwill on its balance sheets.