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Highlights
- Coles' shares were trading 0.725% lower at 10:36 AM AEDT on ASX today.
- The sectoral performance has primarily pulled down the Coles’ share price.
Shares of Coles Group Limited (ASX:COL) started their trade on a weaker note on Thursday morning, falling 0.725% to AU$16.43 apiece at 10:36 AM AEDT despite no price-sensitive information released by the company.
Coles’ shares have dropped nearly 8% on ASX in the past 12 months. On a year-to-date (YTD) basis, the company’s share price has fallen over 8% (as of 10:36 AM AEDT, 20 October 2022).
On Thursday too, the shares of the Australian retailer traded on a muted note, mainly on account of overall weakness in the Consumer Staples sector. Coles’ share price closed at AU$16.46 on Wednesday.
What is weighing on Coles’ share price?
Coles’ shares opened lower once again today despite no major news released by the company. Coles last updated the exchange on 6 October 2022.
The weakness might have extended to Thursday on account of sluggish sectoral performance, which is pulling down Coles’ share price.
Today, the ASX 200 Consumer Staples sector (INDEXASX:XSJ) was trading at 12,365.8 points, down 0.337% or 41.8 points, at 10:56 AM AEDT on ASX.
Recent developments at Coles
On 21 September 2022, Coles shared that it had signed a binding agreement to sell its fuel and convenience retail business to Viva Energy Group Limited (ASX:VEA). After the transaction is executed, Viva will own and operate 710 Coles Express sites which are currently operated by Coles.
The update also revealed the Fuel and Convenience Alliance between both parties, which will terminate with the completion of the transaction. The alliance was otherwise supposed to end in 2029
According to the terms of the binding agreement, Viva Energy will rebrand Coles Express, which is expected to be completed within the next two years.
Furthermore, Coles and Viva Energy have also entered a multi-year strategic partnership which would allow the customers of Coles and Coles Express to continue enjoying attractive offers and loyalty benefits that they currently enjoy at Coles Express sites.
Coles also added that the operation and store support centre teams of Coles Express would transfer to Viva Energy, followed by the completion of the sale. Coles has also agreed to offer ongoing support and service to Viva Energy for up to two years from the completion of the transaction.
