Woolworths are no longer the dominant player and are just trying to hold on to market share , which as the share price suggest, is very difficult for them. Its hard for WOW to expand it stores which is already saturated in the market, while ALDI still has plenty of room to grow in both the food and alcohol area of sales and the opening of new stores. This is what will erode the profits from wow supermarkets and eat in to a falling share price.
WOW has to lower it prices to compete with coles, Costco and Aldi, which will lead to lower profit margins and lower share price long term. They also have to deal with more competition as ALDI grow and new players enter the market, which will further drive lower sales, lower profit margins and lower share price.
The days of WOW supermarkets being the dominant player is long gone. IMO
You just have to look at how they are having to lower their prices to stay competitive. That is not a sign of a dominant playing leading the way, that is a sign of someone playing catch up and trying to hold onto their market shares, rather then be innovative and leading the way.
All is my opinion and not financial advice
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Price($) | Vol. | No. |
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