Aldi's the 'fresh food store', page-60

IMO it's going to get messy trying to compete by having a price war. Long term price wars are very bad for the sector and business. Yes, sure if there is a new player trying to enter you can damage their cash flow with a short term price war, especially when they are just starting out. But I don't think it can be sustained. So when I see Woollies cutting prices it worries me. It's old school.

IMO Aldi can't be compared with Woollies & Coles as their offering is different, but what they are doing is stealing consumer volume & $$ off the more established players. Tesco got smashed with Aldi and Lidl growing market share eating away Tesco's dominance (I'm not fully up to speed with what happened on the other side of the world 2-3yrs ago, but just what stuck in my head).

I'd love for the brains trust of Woollies to break out somehow and find a direction & strategy that differentiates to allow them to get better margins and get out of this price war.

I guess all of what I say is wishy washy but I've struggled to see a clear plan that's been convincing from the company.

I exited 75% of my holdings at $24.71 at the end of Aug, and still hold some at a net average price of $20.56. If the SP heads south as they divest parts of the business (eroding Market Cap for the same number of shares) I'm not sure if I'll average down or exit... The only saving grace for me is it's a monster of a company in terms of Market Cap so you'd assume it would turn around, but that's about it.

I like the discussion thread, I'm curious if anyone has heard any news that can help with my decision process whether to stay / move to something else in the next 6mths.