Coles (ASX:COL) share price on watch amid latest push to Kmart market

The supermarket giant’s shares will be in the spotlight today. Here’s why
The post Coles (ASX:COL) share price on watch amid latest push to Kmart market appeared first on The Motley Fool Australia. –

The Coles Group Ltd (ASX: COL) share price will be in focus today.  

Investors will be keeping an eye on the supermarket giant amid its latest push to expand into the premium homeware market.

Let’s take a closer look.

Why are investors watching the Coles share price?

Coles is one of the most trusted brands in Australia and plans to grow its market share by expanding into premium homewares.

According to a recent article in The Australian, the supermarket giant has struck a deal with celebrity chef Curtis Stone.

Stone’s high-end cookware, which has been popular on the US Home Shopping Network, is set to be sold exclusively at Coles. The high-quality cookware and utensils will be available to shoppers in an affordable price range.

With this latest deal, Coles looks to expand into the premium homewares sector dominated by Kmart, which is operated by Wesfarmers Ltd (ASX: WES).

Coles is not alone, with rival supermarket giant Woolworths Group Ltd (ASX: WOW) launching a new range of home accessories in August.

More on Coles

Last month, Coles released its full-year report for FY21 which noted a bumper year for the supermarket giant.  

The company’s report was highlighted by a 3.1% increase in sales revenue for the year of $38,562 million.

Other highlights from Coles’ report included;

Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5.4% to $3,432 million;
Net profit after tax up 7.5% to $1,005 million;
Fully franked final dividend of 28 cents per share. This resulted in a record total dividend of 61 cents per share, up 6.1% from FY20.

Coles cited several initiatives for its surging grocery segment, including the continued roll-out of its ‘Click & Collect’ service.

Outlook on the Coles share price

Since the start of the year, shares in the supermarket behemoth are down more than 6%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has managed to claw 11% higher in 2021.

Despite the subdued performance, the Coles share price has support from various institutions.

Most recently, leading broker Morgans retained its add rating on the company with a $19.80 share price target.

According to analysts, Coles is well placed to benefit from people working from home and consuming more due to COVID-19 lockdowns.

The Coles share price closed yesterday’s session at $17.28.

The post Coles (ASX:COL) share price on watch amid latest push to Kmart market appeared first on The Motley Fool Australia.

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

Before you consider Coles, 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 Coles 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

HomeCo Daily Needs (ASX:HDN) share price halted on acquisition and guidance upgrade news
4 ASX shares just got a massive boost

Analysts rate these ASX dividend shares as buys

Top broker says Coles (ASX:COL) share price is a buy
What does the future look like for the Coles (ASX:COL) share price?

Motley Fool contributor Nikhil Gangaram 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 and Wesfarmers Limited. 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!