What to expect from ASX consumer stocks this Christmas

Highlights:

• ASX shops will remain shut on 26 and 27 December 2022 on account of Christmas and Boxing Day.
• The prospects of retail sector seem positive this Christmas session as the Australian Retailers Association expects Aussies to spend around AU$6.6 billion.
• ASX 200 was up 0.52% at 11:12 AM AEDT and ten out of eleven significant sectors were trading in green.

A few days are left from the Christmas holidays, and ASX will be shut down for quite a few days. Since Christmas falls on Sunday, ASX would recognise 27 December 2022 as the Christmas Day public holiday. So, the last trading day before Christmas will be 23 December, and normal trading will commence on 28 December.

Investors have a few days to execute trade before the holidays. Let's look at the prospects of the Australian consumer sector before the holiday begins.  

This Christmas season, the outlook seems positive for the retail sector as the Australian Retailers Association (ARA) has estimated that Aussies will spend AU$6.6 billion in the four days. It is 6.4% higher than last year's spending.

Worth mentioning here is that Christmas came early for Australian retailers as it had already experienced a 5% surge in sales over the previous year. The sales in apparel increased by 8.6%, by 4.8% in fuel and convenience, by 2.6% in electronics, by 8.9% in restaurants and by 10.3% in grocery.

The Australian stock market is heading into a festive trading period, and it will be interesting to see how ASX-listed consumer stocks are performing. In line with this, this article talks about Woolworths Group Limited, Coles Group Limited, Tabcorp Holdings Limited, and Super Retail Group Limited.

For context, S&P/ASX 200 was up 0.52% to 7,152.10 points at 11:12 AM AEDT on 22 December 2022. Eight out of eleven significant sectors were trading in green along with the index.

Woolworths Group Limited (ASX:WOW)

According to the company's official website, one of Australia and New Zealand's biggest retail company, Woolworths, offers exceptional services, prices, and products to customers on food and everyday needs. The company currently operates 1,400 stores across Countdown supermarkets in New Zealand, Woolworths supermarkets in Australia, Big W brands that serve wholesale and export markets and eCommerce business. 

This Christmas, the Metro60 application that delivers from Woolworths in approximately 60 minutes was spreading Christmas vibes by delivering family photos with Santa in selected suburbs across Melbourne and Sydney. 

From 5 to 9 December, people had a chance to book a Christmas photo shoot with Santa at their home via Metro60. 

In the financial year 2022, the company had reported "strong Christmas trading period" when its financial performance was affected by numerous challenges. 

At 10:49 AM AEDT, Woolworths’ shares were spotted trading 0.47% lower at AU$34.07 per share.

Coles Group Limited (ASX:COL)

Australian retailer that operates around 2,500 outlets nationally, Coles Group distributes products like household goods, groceries, fresh food, fuel, financial services, and liquor. Coles marked its beginning in 1914 when G.J. Coles opened the first store in Victoria. In November 2018, the company got listed on ASX as it got demerged from Wesfarmers. 

During the annual general meeting 2022, the company said that it is 'optimistic' about the Christmas period. 

"We have curated our most sustainable Christmas range ever focused on easy entertaining for a variety of budgets.", said the CEO in the address to shareholders. 

The company said in a media release that it would donate 5,000 hams to Aussies facing hardships. The donation is part of SecondBite, a Christmas appeal for food rescue charities. As reported, the funds raised by Coles Christmas appeal this year will assist SecondBite rescue and deliver unsold food to approximately 1,00 community food relief groups in Australia. 

Matt Preston, ambassador, and board director of SecondBite, stated that funds raised would offer food relief in the nation in the form of essential ingredients, food hampers and cooked meals. 

At 10:57 AM AEDT, Coles’ shares were spotted trading 0.24% lower at AU$16.91 per share.

Tabcorp Holdings Limited (ASX:TAH)

Gambling and other entertainment services provider, Tabcorp says that it is introducing leading products and services intending to break into new horizons. Three strategic pillars of Tabcorp are innovation and growth, integrated customer experiences and industry sustainability. 

The company manages three brands, TAB, sky racing and Skysports and MAX. 

According to AGM 2022 update, the company is focused on becoming a simpler business with customer innovation as the core driven by digital technology. In line with this, the company had launched a TAB application and a digital platform that empowers the group to launch its products in the market at a faster pace. 

The FY22 of Tabcorp was significantly affected by the pandemic. Retail business in Victoria and New South Wales was affected for around four months. As reported, group revenue from continuing business fell by 4.3% over the previous year and wagering and media revenue fell by 5.1%. 

Before Christmas, the company was planning to complete two new products and numerous digital updates by using its new digital platform – the TAB application. 

At 10:53 AM AEDT, Tabcorp’s shares were spotted trading 1.12% higher at AU$1.08 per share.

Super Retail Group Limited (ASX:SUL)

Speciality retail store operator, Super Retail Group, owns brands like Macpac, BCF, rebel and Supercheap Auto. In 2004, the company got listed on ASX, and at that time, it operated more than 176 stores in New Zealand and Australia. 

During the AGM 2022 update, the company highlighted that the first half of the financial year would be dependent upon the peak Christmas holiday period. 

In a trading update, the group reported a positive start to FY23, as all brands registered substantial like-for-like sales growth. For the full year 2023, increased living expenses and higher mortgage rates are expected. 

As reported, the company aims to open to 30 stores in FY23. 

At 10:57 AM AEDT, Super Retail’s shares were spotted trading 0.093% lower at AU$10.71 per share.