The country’s largest retailer, Woolworths, has made a solid annual profit of $2 billion, which is a 10.1 per cent increase from the previous year.

According to the company’s CEO Michael Luscombe it was a “good overall result in a challenging trading period”.

The company said its Focus on Fresh brand will continue to underpin its success while the launch of the Macro Wholefoods Market range has brought in numerous ranging opportunities.

The record profit has also left shareholders smiling with Woolworth’s plan for a $700 million off-market buy-back, which is expected to give returns of over $1 billion.

At the same time Woolworths customers have benefited from its reduced shelf prices to over 4,400 grocery products in addition to standard 2,000 weekly specials. Its Everyday Rewards program has also kept customers loyal, along with enhancing shopping experiences through store refurbishments.

Luscombe says it expects for the company’s net profit to grow between 8 to 11 per cent for the 2011 financial year.