Sydney, June 26, 2026, 06:04 (AEST)
- Woolworths finished up for the sixth session, closing at A$39.94
- Shares have risen for six straight sessions, adding around A$2.6 billion in value. The stock outperformed the ASX 200 by 8.1 percentage points.
- CHOICE basket is 2.1% cheaper than Coles with specials. It’s 12.0% pricier than Aldi.
Woolworths Group Ltd (ASX:WOW) finished Thursday at a 52-week high after climbing for the sixth day in a row. A new grocery survey out Thursday priced its 16-item shop lower than Coles, days before Australia’s new supermarket price-gouging laws kick in.
The shares added 1.45% to A$39.94, reaching as high as A$40.10. The S&P/ASX 200 slipped 0.68% to 8,748.70. Friday’s cash session was still shut at the time of filing.
Woolworths is up 5.7% since the June 17 close, while the index lost 2.4%. That’s an 8.1-point difference. With 1.22 billion shares on issue, the move added roughly A$2.6 billion to Woolworths’ market cap.
CHOICE put shoppers in 104 supermarkets during March. The group found the basket was A$76.82 at Woolworths, A$78.50 at Coles Group Ltd (ASX:COL), and A$68.60 at Aldi with specials included. “The Woolworths basket cost $76.82, and the Coles basket cost $78.50,” CHOICE Editorial Director Mark Serrels said. CHOICE
Woolworths came in 2.1% cheaper than Coles during the test. It still cost 12.0% more than Aldi. The survey only covers a small basket and uses prices from three months ago, but it gives investors a read on how Woolworths is spending to claw back grocery share. The tighter gap with Coles works in Woolworths’ favour. The Aldi premium puts a cap on how high Woolworths can take prices.
New rules taking effect July 1 target grocery retailers pulling in over A$30 billion a year. Stores can’t set prices much higher than their supply costs plus a reasonable margin. Breaking the rules can mean a penalty—at least A$10 million, or three times the benefit gained, or 10% of yearly turnover, whichever is higher.
Assistant Minister Andrew Leigh said Thursday the big supermarket chains were “certainly on notice” as the laws got closer. The Australian Competition and Consumer Commission will enforce the new rules. Andrew Leigh
The stock’s rally has jumped past most analyst targets. Out of 15 analysts tracked by Investing.com, the average 12-month target price for Woolworths is A$34.88, with the highest at A$39. That average is 12.7% under where shares closed on Thursday. Only six analysts have a buy rating on the name.
Woolworths is betting on more grocery sales and cost cuts to drive its case. The company said Australian Food sales were up 5.9% in the third quarter, even as average prices dipped 0.8%. Woolworths kept its forecast for fiscal 2026 operating profit growth in this unit at a mid-to-high single-digit rate, but dropped talk of hitting the top end. CEO Amanda Bardwell said the company is “making every dollar count”.
Australian Food’s first-half operating margin went up 32 basis points to 5.5%. Woolworths posted A$400 million in annualised cost savings. The cost cuts and margin boost help counter price freezes and fuel costs, but with shares at current levels there’s less cushion for a margin slip.
The shares are trading 18.8% higher than the A$33.63 intraday low from April 30. On that day, Woolworths trimmed the top end of its Australian Food earnings forecast and said it would put a three-month freeze on 300 staple prices.
Woolworths will report fiscal 2026 results August 26.
