Woolies falls behind Coles in sales growth as shopping goes back to normal

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The head of supermarket giant Woolworths has admitted the return to pre-COVID shopping habits may be disproportionately benefiting rival Coles as his company gave a weaker-than-expected trading update

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Analysts had been predicting that Coles had been losing market share to its major rival, but these latest results suggest the tables may have started to turn. Mr Banducci acknowledged that the normalisation of shopping habits post-COVID were likely favouring Coles with its higher number of inner-city and shopping-centre-situated stores, which had been harder hit during the lockdowns.

Shares in Woolworths, however, tumbled by 3.8 per cent to $39.81. Milford Asset Management portfolio manager Greg Cassidy said overall Woolworths’ performance was strong, but the gap between it and Coles appeared to be narrowing.Mr Cassidy said it was important to note that Coles’ outlook included the bumper Easter period where Woolworths’ did not, however, the fund manager said it did appear Coles’ was gaining market share, though not necessarily from Woolworths.

Much of this growth was due to stronger apparel sales, Mr Banducci said, along with five years of “very hard” work done by Woolworths to turn the struggling department store around. Last year, Big W reported a profit for the first time in four years.

Source: News Formal (newsformal.com)

 

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