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The 63-year-old received life-threatening injuries when she was allegedly attacked at Yamanto Central Shopping Centre on Warwick Road about 5.25pm on Monday.
Her family have told of the moment they received the “devastating news” in a statement.
“The incident has left us in a state of shock and we remain in the process of trying to come to terms with what has happened,” her family said.
Her family said Watt is now out of intensive care and off sedation. They have been able to speak to her.
“We still have a long journey ahead of us but thankfully Claudia is now on the road to recovery,” her family said.
“Coles complies with all legislation regarding the sale of kitchen knives, and this withdrawal is being taken out of an abundance of caution as we conduct a review,” a Coles spokesperson said.
“The safety of our team members and customers is our number one priority across all aspects of our business.”
SMEG kitchen knives will remain on sale at service desks until January 21.
A 13-year-old boy has been charged with attempted murder in relation to the incident.
He allegedly fled the scene but was chased down by bystanders.
“While we were walking he asked me if he was in trouble.”
Watt’s family has thanked the members of the public and first responders for their help.
“We would also like to take the opportunity now to publicly acknowledge the support that we have received and thank all those involved who helped to save her life,” her family said.
”We would also like to acknowledge and thank those members of the public who acted quickly to assist in the apprehension of the offender.”