It’s been a great year for the supermarket giant, with record highs in the shopping trolley this week.
The post The Woolworths (ASX:WOW) share price is surging to record highs appeared first on The Motley Fool Australia. –
The Woolworths Group Ltd (ASX: WOW) share price has surged to record highs after a steady rise since the start of 2021.
Shares in the supermarket behemoth closed yesterday’s trading session at a record $38.93.
Most recently, there have been several catalysts that may have boosted the Woolworths share price.
Let’s take a closer look.
Acquisition and demerger fuels Woolworths share price
Early last month, the Woolworths share price lifted following news regarding its proposed acquisition of PFD Food Services.
The Australian Competition and Consumer Commission (ACCC) announced that it would not oppose the company’s acquisition. As a result, Woolworths received the green light for the $552 million investment.
Shares in Woolworths also took a boost in May after the $10 billion demerger of its Endeavour business.
Endeavour Group Ltd (ASX: EDV) is a separately listed entity that owns Woolworths’ retail and drinks businesses. These include popular bottle shop chains Dan Murphy’s, BWS, 300 licensed venues and 12,000 gaming machines.
Around 99.85% of Woolworths shareholders voted in favour of the demerger. As a result, the deal is estimated to return between $1.6 billion to $2 billion in cash to shareholders via dividends.
Woolworths launches digital wallet
Earlier this week, Woolworths announced the creation of a digital wallet for its Everyday Rewards loyalty program.
According to Woolworths, the new digital wallet is aimed at streamlining checkouts and enhancing consumer shopping experiences.
The digital wallet ‘Everyday Pay’ is expected to be trailed in the next few months.
The launch follows the supermarket giant’s stand-alone payment system ‘Wpay’ which was announced last month.
Woolworth noted its position as the 5th largest processor of card payments in Australia, equating to a value of approximately $50 billion.
Snapshot of the Woolworths share price
Shares in Woolworths have rallied more than 11% since the start of the year.
Despite closing yesterday’s trading session at $38.93, shares in the supermarket giant hit an intra-day high of $39.09.
In early opening trade, the Woolworths share price is currently swapping hands for $39.09.
Should you invest $1,000 in Woolworths right now?
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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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.