What’s impacting the Woolworths share price on Thursday?

The Woolworths Group Ltd (ASX: WOW) share price is up 0.4% as we head into the lunch hour.

Woolworths shares closed yesterday trading for $34.17 and are currently changing hands for $34.29 apiece.

Woolworths, and indeed most ASX consumer staples shares, are outperforming the S&P/ASX 200 Index (ASX: XJO), with the ASX 200 down 0.7% at this same time.

What are ASX 200 investors considering?

Atop the broader bullish trend in consumer staples stocks, the Woolworths share price is outperforming despite preliminary competition concerns raised by the Australian Competition and Consumer Commission (ACCC) today.

In a release this morning, the ACCC outlined concerns over Woolworths’ proposed acquisition of the independent supermarket operating as SUPA IGA in Karabar and co-located liquor store operating as Liquor Boss, located in New South Wales.

Woolworths and SUPA IGA Karabar are currently competitors in the area.

Commenting on the concerns, ACCC commissioner Liza Carver said:

Competition between supermarkets is important in ensuring different product ranges, promotions, and service offerings. We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of groceries in the local area.

Within a 5 kilometre radius of SUPA IGA Karabar, it would reduce the number of operators of supermarkets with a significant size and range from four to three, leaving only Woolworths, Coles and ALDI.

Carver noted similar concerns over Woolworths’ proposed liquor store acquisition. Concerns which the Woolworths share price looks to be shrugging off.

“We are also considering whether the acquisition raises similar concerns in relation to liquor stores, by removing the Liquor Boss as an independent competitor to major liquor store operators,” she said.

Back in 2008, the ACCC also opposed Woolworths’ proposed acquisition of the Karabar Supermarket. At the time, the supermarket had different owners and traded under the ‘Supabarn’ banner.

Woolworths share price snapshot

The Woolworths share price, as you can see in the chart below, is down 11% in 2022. That underperforms the 5% losses posted by the ASX 200 so far this calendar year.

The post What’s impacting the Woolworths share price on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 10 ASX shares to buy in 2023
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• What’s in store for the Woolworths share price in December?
• Why did the Woolworths share price have such a ripper November?
• Dividends! Goldman Sachs says these ASX 200 shares are buys for income investors

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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