Filed Under:  U.S. & World

Woolworths is disturbing the whole market

Contributed by on April 15, 2016 at 6:49 am

Coles, the main rival of Woolworths in grocery business has a very good quarter. Meanwhile, the results of Woolworths are still unknown. The economists began to worry.

Thursday was very successful for Coles, with its Wesfarmers sales that brought them increase of 5.9 percent.

The numbers of Wesfarmers raised on 2.8 percent in stock. However, the main investors are still following the possible impact on its main rival, Woolworths. It can be 1.1 percent on a market. It is still rising.

Woolworths is still in the game, no matter how hard they must work to keep one of the leading places on a market. Their golden years were during 1990s and 2000s. After that time, they desperately struggle with younger and bigger corporations.

They tried to lower the prices on their products. However, it did not show a big impact on the Coles.

During the last 26 quarters, we can definitely admit that Coles is a leading corporation on the market. Their income increased and it is still rising. Nobody believes it would stop after 26, so there is probably 27th successful quarter coming.

Coles leads in numbers for many years. UBS admits in their reports that Woolworths is under the big pressure. Coles continue to raise numbers even in the complicated and unstable economic situation.

Still, the specialists expect some deterioration in the future. The market is unstable. The UBS recommends to be careful and to think about the backup plan, before taking any further risks.

Woolworths’ results will be ready on May 3. Until that time, it is better to wait and to follow new changes on the market.

The stock of Woolworths is going down day by day. During the year, it has lost 10 percent. Meanwhile, Wesfarmers gained 1.1 percent to their stock. Woolworths added 0.3 percent to their $21.71 prize.