The Woolworths Group Ltd (ASX: WOW) share price is slightly up after it announced a new range of homeware products it will sell at its Australian supermarkets.
At the time of writing, shares in the consumer staples and retail giant are trading at $40.01 – up 0.54%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.03% higher.
Let’s take a closer look at today’s news.
Woolworths share price up amid new range launch
Woolworths today launched a new range of home and office accessories in a bid to ramp up sales in non-perishable and non-food divisions.
The new inventory includes bedding, towels, and home office supplies, with prices starting from $10.
The supermarket is taking on Kmart, owned by Wesfarmers Ltd (ASX: WES), a market leader for home products in the value price range. According to a 2019 Roy Morgan poll, 1-in-5 shoppers went to Kmart for their home product needs and a further 5.6% shopped at Target — a brand also under the Wesfarmers umbrella. Since this poll, a number of Target stores have been rebranded as Kmart.
In contrast, Woolworths’ rival brand Big W had only an 8.1% market share.
Big W, which represents Woolworths Group’s homeware appliances business, has been underperforming against other divisions within the company. In its half-yearly update, Woolworths reported that Australian food generated more than $18 billion per square metre (psm), Endeavour drinks saw returns of about $21 billion psm, while Big W generated only $4.4 billion.
Management commentary
Woolworths general manager for non-food, James Hepworth, said:
With many Australians spending more time working from home, we know customers are looking for simple and affordable ways to improve their space.
Our new range features accessories that are perfect for a home office, with bed linens and towels made with eco-friendly materials. With spring just around the corner, this is a great way for customers to get organised to bring a fresh look and feel to their home for great value.
Woolworths share price snapshot
Over the past 12 months, the Woolworths share price has underperformed the ASX 200 by about 4 percentage points – rising 20% to the index’s 24%. Year-to-date, however, it is overperforming the Australian benchmark by about 5.5 percentage points.
Woolworths has a market capitalisation of around $50.4 billion.
The post Woolworths (ASX:WOW) share price rises as it launches new homewares range appeared first on The Motley Fool Australia.
Should you invest $1,000 in Woolworths right now?
Before you consider Woolworths, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- Woolworths (ASX:WOW) share price unhurt by call for COVID bouncers
- Woolworths (ASX:WOW) share price up as stores converted to online hubs
- Own Woolworths (ASX:WOW) shares? Here’s what to look for during reporting season
- Pricing power shares like Woolworths (ASX:WOW) help fight inflation: expert
- ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3jyUkvU
Leave a Reply