your points are valid but retail sales particularly groceries are more immune from oil price rises and interest rate rises. people still need to eat.
the pe ratio of 20 is high but if you're growing the business at double digits then it's ok.
woolies pe of 18 is better but they're running a far more efficient business and they're likely to not grow their business as much as coles over the next few years. fletcher has a lot of catchup to do and a lot more fat that he can cut.
i have holdings in both but i believe coles is a rebound story after wallowing in woolies footsteps over the last 5 or so years. also interesting that woolies affirmed double digit growth yesterday despite the higher fuel costs, etc.
CML Price at posting:
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