Consumer NZ says it will feel "wrong" to many New Zealand shoppers that supermarket chain Woolworths has been able to spend $400 million on store refreshes and still banked a $163 million profit.Woolworths has reported its results for the year to the end of June. New Zealand sales were up 2.5 percent to $8.49 billion, although earnings dropped in the second half of the year, which the company said was due to customers looking for savings and disruptions from operating model changes.It reported earnings before interest and tax in New Zealand of $163m up 8.8 percent from a year earlier.Woolworths said to deliver value for New Zealand shoppers it had to have a sustainable business."In a highly competitive environment we also have to run an efficient business. We note that the Commerce Commission's recent Grocery Report compares the profitability of 13 local and global supermarket operators. Woolworths is 13th of 13 on profitability on all measures cited."But Consumer NZ chief executive Jon Duffy had concerns."We see people struggling to pay for groceries. Our supermarket survey shows more than a third of New Zealanders regularly or very often stretch their food budget and 30 percent are buying less fresh or whole foods due to cost. The healthy choices for New Zealanders are being squeezed by high prices."In a cost of living crisis, Woolworths has been able to spend $400 million on store refreshes and has still made a profit of $163 million. That will feel wrong to many consumers, not just those struggling to put food on the table."New Zealand managing director Sally Copland earlier told RNZ that the chain, which also includes the Fresh Choice brand, had taken steps to absorb costs and shield customers from higher prices."Earlier this year we reiterated our commitment to delivering value to kiwi customers whether through affordable everyday staples or absorbing costs to keep prices low."She said that included not passing on higher red meat costs, promotions for fresh food, and special offers in its rewards scheme.Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make and spend money.