Could new COVID-19 lockdowns across Australia be driving the supermarket giant’s shares higher on Monday?
The post Why the Woolworths (ASX:WOW) share price is pushing higher today appeared first on The Motley Fool Australia. –
The Woolworths Group Ltd (ASX: WOW) share price is in the rise this afternoon, trading up 2.79% at $37.81.
With the S&P/ASX 200 Index (ASX: XJO) trading down 0.06% today, let’s take a look at what’s helping the Woolworths share price outperform the market.
Lockdowns are back
New COVID-19 lockdowns and travel restrictions are sweeping across the country, with Greater Sydney entering a two-week lockdown until 9 July, and various border closures between states.
With social mobility coming to a grinding halt across many states, this could once again influence higher in-home consumption of supermarket staples.
Previously, in Woolworths’ FY20 full year results, the company cited:
In H2, total sales growth of 10.4% on a normalised basis was driven by COVID pantry-loading and higher in-home consumption through lockdown and community movement restrictions.
While Sydney’s lockdown is only for two weeks (for now), it could still have a notable impact on supermarket sales.
Take Victoria’s experience, for example.
The Australian Bureau of Statistics (ABS) reported a 1.5% increase in Australian food retailing turnover in May 2021, seasonally adjusted.
The jump in food retailing was led by Victoria, which reported a 4.0% increase after the state entered a COVID-related lockdown in late May. Within food retailing, the ABS noted a particularly strong supermarkets turnover.
COVID-19 winners running today
The Woolworths share price joins today’s resurgence of ASX COVID-19 winners.
Notably, ASX e-commerce shares including Temple & Webster Group Ltd (ASX: TPW), Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have rallied 10.33%, 6.23% and 8.02% respectively, possibly influenced by recent lockdown announcements.
Should you invest $1,000 in Woolworths right now?
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.