Can Woolworths (ASX:WOW) win its delivery battle against Coles?

The pricing war has just heated up…
The post Can Woolworths (ASX:WOW) win its delivery battle against Coles? appeared first on The Motley Fool Australia. –

The Woolworths Group Ltd (ASX: WOW) share price could be a winner as a result of COVID-19. The company’s flourishing online shopping service has been a massive hit with consumers opting for convenience. However, a pricing war with Coles Group Ltd (ASX: COL) looks to intensify as the supermarket giant looks to win market share.

At Monday’s closing bell, Woolworths shares ended the day down 0.33% to $39.50.

Woolworths cuts delivery costs

In a bid to entice consumers in the online shopping scene, Woolworths revealed that it is reducing the delivery fees.

For all orders $50 and over, customers who are signed up to the company’s subscription service will receive free deliveries. Normally, this fee charges up to $15 per delivery depending on the shorter same-day or next-day delivery options.

Woolworths is seeking to retain customers but also bring new shoppers by offering a free 30-day trial of Delivery Unlimited. The service costs $119 for an annual subscription, which is 34% lower than previously advertised. Customers pay month-to-month and can cancel anytime.

In addition, using Delivery Unlimited will collect double everyday reward points with every online shop. These points can be redeemed for credit to use on Woolworths products or converted into Qantas frequent flyer points.

On the other hand, Coles offers a free delivery service on purchases of $250 or more. Although, between Tuesday and Thursday, delivery costs can be as little as $2 depending on spend amount.

Both Woolworths and Coles are fighting for market share as the demand of ‘click and collect’ means significant e-commerce sales. Shopping habits have completely changed as a result of the pandemic.

Woolworths share price summary

It’s been a fantastic year for Woolworths shareholders, with the company’s shares accelerating to new all-time highs. Over the past 12 months, Woolworths shares have pushed 15% higher, mostly coming from year-to-date gains, up 14%.

On valuation grounds, Woolworths commands a market capitalisation of roughly $47.87 billion, with approximately 1.2 billion shares on its books.

The post Can Woolworths (ASX:WOW) win its delivery battle against Coles? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Is the Coles (ASX:COL) share price a buy for the 5% dividend yield?

Top brokers name 3 ASX shares to sell next week

What happened to the Woolworths (ASX:WOW) share price in October?

Christmas is coming, but is the Coles (ASX:COL) share price already overstuffed?

Here’s why the Woolworths (ASX:WOW) share price is down 5% in a week

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!