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Highlights:
- Out of the significant 11 sectors under the S&P/ASX 200 index, six ended in green zone on Wednesday. These featured Consumer Staples and Consumer Discretionary sectors too.
- Australian Bureau of Statistics, on 27 July 2022, revealed that the Consumer Price Index (CPI) rose 1.8% in June quarter.
- The annual CPI inflation rose to 6.1% in the June quarter.
- On the ASX, while the Consumer Staples sector closed 0.35% up, Consumer Discretionary sector ended 0.92% higher.
Retail stocks generally fall in the category of either consumer staples or consumer discretionary sectors on the ASX and consumer stocks are usually considered as ‘safe heaven’ by investors as it is believed that investing in such stocks will always be more profitable amidst uncertain market conditions.
Of late, businesses have been facing several challenges like COVID-19 lockdowns, border closures, disruptions in the supply chain, rising inflation and constant interest rate hike by the Reserve Bank of Australia (RBA).
However, it is widely believed that no matter what the challenge is, consumer stocks are capable of sailing through them.
Today, the Australian Bureau of Statistics released the Consumer Price Index (CPI) for the June quarter. As per the ABS report, CPI has gone 1.8% up in June 2022 quarter. ABS stated that it was the second highest CPI growth since the introduction of Goods and Services Tax (GST).
Consumer Price Index (CPI) is a significant economic metric that measures the average difference in price paid by consumers for purchasing goods.
Meanwhile, the S&P/ASX 200 Consumer Staples sector (INDEXASX:XSJ) ended 0.351% up at 13,365.9 points on the ASX today (27 July).
On the other hand, the S&P/ASX 200 Consumer Discretionary sector (INDEXASX:XDJ) closed 0.921% up at 2870.40 points on the ASX today (27 July).
Here, we talk about four leading retail companies in Australia - Coles, Woolworths, Wesfarmers, and JB Hi-Fi, and analyse their performance on the ASX today.
Coles Group Limited (ASX:COL)
Australian supermarket Coles Group Limited (ASX:COL) share price closed 0.372% lower at AU$18.710 per share on the ASX today (27 July).
In a year’s time, Coles’ share price has appreciated by 6% on the ASX. Meanwhile, the food staple retailer’s YTD-based share price gained 4.53% (as of today’s close).
Woolworths Group Limited (ASX:WOW)
Food staples retailer Woolworths Group Limited (ASX:WOW) closed 0.676% higher at AU$37.230 per share on the ASX.
Woolworths’ share price has declined by almost 5% on the ASX in a year. On the other hand, Woolworths’ YTD-based share price declined by 3.22% (as of 4:10 PM AEST on the ASX today, 27 July).
Image source: © Igorbukhlin | Megapixl.com
Wesfarmers Limited (ASX:WES)
Leading Australian retailer Wesfarmers Limited (ASX:WES) shares closed a tad higher , up 0.892% at AU$46.360 per share on the ASX today (27 July).
Wesfarmers’ share price has lost 24.68% in last one year while on Y-T-D basis, the stock has gone down 22.76% on the ASX.
JB Hi-Fi Limited (ASX:JBH)
Electronics retailer JB Hi-Fi Limited (ASX:JBH) shares closed marginally lower, down 0.254% at AU$43.060 per share on the ASX today (27 July).
JB Hi-Fi’s stock price has fallen 12.57% in last one year on the ASX while the year-to-date price fell 11.76%.
