The grocery giant’s shares are hitting new heights despite a negative ruling against one of its proposed land development in Melbourne.
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The Woolworths Group Ltd (ASX: WOW) share price is well in the green today.
Shares in the supermarket giant are currently trading 1.19% higher at a new, all-time high of $40.70. This comes despite the company receiving a negative ruling on one of its proposed land developments in Melbourne.
Let’s take a closer look at the news.
Woolworths share price jumps despite ruling
The Woolworths share price appears to be shrugging off an unfavorable tribunal ruling on Thursday.
As reported by The Age, the company’s development plans for a property in south-east Melbourne have been thwarted for a second time.
Woolworths put forward a proposal to develop two apartment towers and a grocery store at its property in Elsternwick.
The proposal was delivered to and rejected by councillors from the City of Glen Eira.
Councillors rejected the proposal based on the low-rise status of the heritage street.
This is the second rejection Woolworths has received for its development plans at the site.
Residents of the area have protested against the development since Woolworths bought the land in 2017.
Woolworths had previously presented its plans to the Victorian Civil and Administrative Tribunal (VCAT) last year.
Following the original rejection of its proposal, the company amended the development plans by reducing the proposed height from 14 storeys down to 10 however this has not been sufficient for approval.
The Woolworths share price is having a positive day on the ASX despite the plan’s rejection.
At the time of writing, shares in the supermarket giant are trading at both an intraday and a new, all-time high.
Snapshot of the Woolworths share price
The Woolworths share price has had a stellar year thus far. Since the start of the year, shares in the supermarket giant have stormed more than 17% higher.
There have been several catalysts that have boosted shares in Woolworths.
Of particular note was the company’s $10 billion demerger of its Endeavour business.
The demerger saw Endeavour Group Ltd (ASX: EDV) become a separately-listed entity that owns retail and drinks businesses.
These include popular bottle shop chains Dan Murphy’s and BWS as well as 300 licensed venues and 12,000 gaming machines.
In addition, Woolworths’ grocery business has seen elevated consumer demand given COVID-19 induced lockdowns.
Woolworths has looked to capitalise on this increased demand by launching a digital wallet for its Everyday Rewards loyalty program.
No doubt shareholders will be keeping a close eye on the Woolworths share price this reporting season.
The supermarket giant is slated to release its results for the full year on 26 August.
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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.