Australian (ASX) Stock Market Forum

WOW - Woolworths Group

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Kremmen said:
That seems like understatement to me. They grew as they headed towards a duopoly, killing off Franklins and most of the independent competitors. Where can they grow now, with more competitors (Aldi, Costco, etc) entering the market? I don't understand why their price has kept rising and also am thinking of selling out despite the large capital gain. (Not as large a gain as some here, but still purchased under $3.)
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I was thinking along the same lines as you and sold out recently, I replaced them with AFI, the reasoning behind the move was to increase the dividend stability in the SMSF.
I think WOW are a great company and will have no hesitation getting back in, just at the moment with the added competition for WOW I will wait and see their next set of figures.
The other plus for my situation was, I sold them into the SMSF years ago, so the CGT wasn't an issue. I probably would have had to have thought harder, on the decision if CGT, had been involved.
Long term I think WOW will always do well, just how well remains to be seen.
Just my opinion. I don't hold.
 
sptrawler said:
Woolies going into subscription home delivery, I'm not sure on the viability of this one, unlike netflix delivery is by vehicle not over the cable. It may carry more overheads than it makes. IMO

https://www.smh.com.au/business/com...hes-subscription-service-20190917-p52s2g.html
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Certainly in the regions, WOW is way ahead of COL for value and diversification.... Pubs, grog, fuel, food.

I haven't been to an Aldi or other such but I would imagine in large bogan cities such as Sydney, Melbourne and Brisbane they would be having an effect on the bottom line of both.

I bought back in to WES recently as they seem to have the retail mix sorted, as well as their other diversified activities.

gg
 
sptrawler said:
Woolies going into subscription home delivery, I'm not sure on the viability of this one, unlike netflix delivery is by vehicle not over the cable. It may carry more overheads than it makes. IMO

https://www.smh.com.au/business/com...hes-subscription-service-20190917-p52s2g.html
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It's for food. "Australian shoppers can now include Woolies alongside their monthly Netflix and Spotify bills, with the supermarket giant launching a new subscription service for grocery delivery.

Called 'Delivery Unlimited', customers receive free delivery on their weekly shop for a monthly or annual fee, provided they spend more than $100 on each order."

(and WOW owns 30% of Marley Spoon Aust ... ASX: MMM - probably some insights from them? )
 
Dona Ferentes said:
It's for food. "Australian shoppers can now include Woolies alongside their monthly Netflix and Spotify bills, with the supermarket giant launching a new subscription service for grocery delivery.

Called 'Delivery Unlimited', customers receive free delivery on their weekly shop for a monthly or annual fee, provided they spend more than $100 on each order."

(and WOW owns 30% of Marley Spoon Aust ... ASX: MMM - probably some insights from them? )
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Six months is a long time in shopping. OMG
 
A cheque out chick of my acquaintance tells me that there has been a cost blowout which will negate the increase in cash flow at WOW over the last three months.

gg
 
Garpal Gumnut said:
A cheque out chick of my acquaintance tells me that there has been a cost blowout which will negate the increase in cash flow at WOW over the last three months.

gg
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Probably theft, the way they seem to be beefing up security, recently.:roflmao:
 
sptrawler said:
Probably theft, the way they seem to be beefing up security, recently.:roflmao:
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More likely to be personnel costs right? All the hiring they did?

Security beef up because people keep abusing the staff, what kind of idiot scum abuses some poor kid earning minimum wage stacking shelves and breathing everyones coughs.
 
Country Lad said:
They still take cheques? Do they check first that it won't bounce?
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sptrawler said:
Probably theft, the way they seem to be beefing up security, recently.:roflmao:
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It wasn't a checkout chick.

It was a cheque out chick who fills bags with numbers, bags and bags and bags of them.

And she says the costs are increasing with the sales, and out of proportion.

gg
 
More people eating at home + supply chain overtime for all that toilet paper and other essentials would be my guess.
 
CEO Brad Banducci has given insight into the products that are selling out in stores across Australia – and they’re very surprising. While pasta, baking items and toilet papers have been in hot demand in recent months, the Woolies boss says Australians are now buying more exotic ingredients.

“While the slow cooking movement continues, we’re also becoming increasingly adventurous,” he said. "Ingredients such as cardamom, saffron and dried sesame seeds have doubled in sales. Roasted peppers are up 65%, Asian and hot chilli sauces are both up 40% and capers are up 35%."

“We’re also well into soup season. What’s interesting this year is the explosive growth of dried soup mix packets (up 200%) as people make more warming soup at home."

“It’s also interesting to see customers think about their health, with a big rise in vitamin sales, plus ground ginger and turmeric sales up 120% and sauerkraut up 76%.

“On a related topic, sales of cough and cold products are much lower this year compared to last year."
 
WOW looking strong and hopefully will to hold the break of $41

I am looking for SP to return to pre covid price so we will see how it goes.

Holding @ 39.32

1611538800095.png
 
Woolworths did everything right in the six months to December with revenue and earnings up strongly, a dividend increase for shareholders and the demerger of its $10 billion Endeavour drinks and pubs division on track for a move by this June (documentation could be issued as soon as next month).

While some reports on Woolies half year focused on the way its sales growth in the first weeks of 2021 was stronger than Coles , some 8% v 3.3%, the more important points for investors was the way sales and profits grew in the half year.

But like its rival, Woolies also warned investors that the June quarter performance and perhaps beyond, will see the company come off the boil.
Looking ahead to the rest of the financial year, we expect sales to decline over the March-to-June period compared to the prior year in all our businesses, with the exception of hotels where venues were closed for much of the final four months last year, as we cycle last year’s COVID surge," CEO Brad Banducci said. “However, in parallel, we also expect COVID-related costs to be materially below the prior year, subject to no further widespread prolonged lockdowns."
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1614250878362.png
 
Absolutely agree with the comment Donna, there is no way people will be buying prepper stores, like toilet paper next year.
Well unless another once in a lifetime event happens, Ive seen a few.lOL
 
if we were at the bottom of an index bear this thing would have everyone chatting.....
any bets on how long todays demerger price gap will stay open ?
(and not like it was a secret to those that needed to know, right!)
 
Hmmm.

Judging by todays action, there seems to be some pivoting into the more lucrative booze and pubs biz..
 

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