WOW 0.36% $30.21 woolworths group limited

Personally I shop at Aldi, Coles and Woolies - and I feel that a...

  1. 950 Posts.
    Personally I shop at Aldi, Coles and Woolies - and I feel that a lot of my friends and family do the same.

    I tend to drop in to woolies on Sunday night for fresh fruit and veg for the week, Aldi once a month to stock up on cheap non-perishables like chemicals, toothpaste and things like coffee and cheap wine. I also shop at coles near the office for office snacks.

    I don't know many people who are 'supermarket loyal'. It just depends on best prices in my opinion.

    Other points to observe:
    - I've tried plenty of Aldi products, and about 50% of them suck, particularly toilet paper, milk and fresh produce. They do make a good cheap sausage and some of the frozen stuff is actually pretty good
    - Woolies have truly dominated the liquor market - Dan Murpheys and BWS on lower north shore sydney are always rampantly busy.
    - Woolies has in my opinion the nicest experience of the lot, but is arguably the most expensive.
    - Coles is usually manic for me and their selection is lagging - but this is offset with cheaper prices.

    Anyway, as a WOW investor, all of these things positives/negatives could be changed around within 6 to 12 months.

    I remember not long ago Coles was the dog and Woolies was the star.

    These things fluctuate.

    At the moment, WOW at $21.50 is a bargain, it's been oversold primarily due to the Masters failure, but now that they can concentrate on getting back to their strengths, I genuinely think they have a bright 2 to 5 years ahead of them.

    Oh, and watch out for that Walmart (Foran) buyout bid - at a $27bn market cap, with a low AUD, it's only a matter of time until someone bids for Woolies. Whether it's allowed is a different issue, but the hype would do great things for shareholders.

    BUY this and hold for 5 years, reinvest the dividends.
 
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