Fund managers and analysts are noting Coles’ current outperformance compared to Woolworths, yet opinions diverge on which supermarket’s shares present a superior investment opportunity. Both companies recently faced scrutiny when the Federal Court determined they had underreported overtime for thousands of salaried managers since 2013. Despite this shared legal issue, the two retail giants experienced contrasting outcomes during a volatile reporting season.
Coles shares surged by 8.5 per cent on August 22 following the release of its annual sales figures, which surpassed market expectations. The company also announced a price reduction strategy, targeting over 240 products with an average price cut of 19 per cent. This initiative aims to provide greater value to consumers amid rising cost of living pressures and intensified competition within the grocery sector.
The contrasting performances and future strategies of Coles and Woolworths are leading to varied investment recommendations from financial professionals. While Coles’ recent gains have attracted attention, the long-term prospects of both companies remain a subject of ongoing debate among market analysts. Coles Group Limited is an Australian retailer operating several supermarket chains. Woolworths Group Limited is a major Australian company with extensive retail and investment interests, including supermarket chains.
