Woolworths losing market share, but will catch up to Coles
Woolworths’ WOW underlying NPAT collapsed by 17% in fiscal 2025. In the core supermarkets business, rising wages, industrial action, elevated supply chain costs, and price cuts weighed heavily on EBIT, which fell 11% on a normalized basis. The smaller Big W and New Zealand businesses also disappointed.
Why it matters: Its result contrasts strikingly with that of Coles. Its supermarket sales growth and margin trajectory are underperforming its key competitor. This performance gap is set to continue in fiscal 2026. Shares sold off heavily on the muted outlook, falling 15%.
- We now expect underlying fiscal 2026 EBIT to grow by 9% to AUD 3.0 billion, 9% lower than our prior forecast. We expect price cuts to improve perception of value but…
