EDV, COL, WES, WOW: How are these retail stocks faring on ASX

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EDV, COL, WES, WOW: How are these retail stocks faring on ASX

 EDV, COL, WES, WOW: How are these retail stocks faring on ASX
Image source: © Dumayne | Megapixl.com

Highlights:

  • Retail sector has been moving towards digital platforms to keep up with the changing consumer demand.
  • Since the global pandemic, the retail sector has witnessed a significant digital transformation.
  • There are many Australian companies that has incorporated the digital business model and has delivered significant growth in sales.

Considered as safe haven by investors, the retail sector is undergoing digital transformation to keep up with the changing consumer landscape. Especially after Covid-19 driven pandemic, the digital transformation across the retail industry has picked up the pace. 

Numerous ASX-listed companies have taken the digital-friendly business flight to meet the changing demand of consumers. The digital revolution in the retail sector has allowed companies to survive even during the global pandemic. 

The consumer discretionary sector of ASX features the retail stocks. The stocks of these companies have to live through uncertain market conditions such as supply chain disruptions, inflation, border closure, lockdowns and interest rate hike. 

Here’s the list of ASX retail stocks that have digitised their businesses.

Endeavour Group Limited (ASX:EDV)

Endeavour Group is a drinks retailer and has a hospitality business in Australia. According to the company’s website, the business of the group is based around digital engagement and customer reach. The customer reach is ensured through rewards members. 

The company manages multiple digital platforms. The company’s website and application are the front doors for all customers. The membership programs help in creating value for the most engaged customers. The eCommerce offers an easy way for customers to shop, and lastly, the group capabilities accelerate the broader business. 

According to the third quarter update by Endeavour for the financial year 2022 (FY22), online sales increased by 16.8% to AU$222 million. The announcement read that the company reached online sales of more than AU$1 billion annually. 

Meanwhile, on Tuesday, the shares of Endeavour Group closed 2.26% higher at AU$8.16 per share, with a market capitalisation of AU$14.29 billion. In a month, the share price surged by 2.77% and year-to-date gain is 20.18%. In last five years, the share price increased by 33.77%.

The 52-week range of EDV is AU$6.090 to AU$8.270.

Coles Group Limited (ASX:COL)

Image source: © Nilsversemann | Megapixl.com

Australian supermarket group, Coles have more than 2,500 retail outlets across the country. As per the company’s website, the company processes over 20 million transactions every week. The company runs multiple businesses such as Coles Supermarket, Coles Online, Coles Liquor, Coles Express, flybuys and Coles Financial Services. 

While sharing its third quarter results for FY22, the company reported solid growth of 45% in supermarket eCommerce. Liquor eCommerce sales increased by 50%. During the quarter, the sales growth was driven by liquor land and eCommerce.

Prior strategic investment in online sales drives eCommerce sales. Also, the further enhancements to the customer experiences contributed significantly to eCommerce sales growth.

Recently, Coles informed the market that the full-year results for the FY22 would be released on 24 august 2022. 

The shares of Coles closed 1.12% higher at AU$18.97 per share, with a market capitalisation of AU$25.06 billion. In a month, the share price surged by 0.80% and year-to-date gain is 5.98%. In last five years, the share price increased by 47.74%.

The 52-week range of COL is AU$15.670 to AU$19.280.

Wesfarmers Limited (ASX:WES)

Western Australia-based company, Wesfarmers operates a diverse business that covers safety products, energy fertilisers, beauty and wellbeing, office supplies, chemicals, apparel, outdoor living and home improvement. 

In February 2022, when the company shared its half-yearly report, it mentioned that it has recently invested in digital capabilities, which has resulted in a surge in online penetration.

Recently, the company released the 2022 strategy, in which it highlighted that the online channel is generating profit today, but there are still immense opportunities to increase productivity. 

Talking about today (as of the date of announcement), over 12 million visits are recorded online on a weekly basis at the new trade and retail eCommerce platforms. Around 85% of online customers gave a visit to Bunnings store within a month. Reportedly, the company is well-positioned for long-term growth with over AU$1 billion in online sales and e-commerce, digital and data capabilities with a substantial number of known customers. 

The outlook for FY23 is to digitise online and store operations to reduce costs and generate profit growth. Online growth is also expected to grow the share of wallets.

The shares of Wesfarmers closed 0.29% higher at AU$47.90 per share, with a market capitalisation of AU$54.16 billion. In a month, the share price surged by 3.79% and year-to-date fall is 20.19%. In last five years, the share price increased by 57.98%.

The 52-week range of WES is AU$40.030 to AU$67.200.

Woolworths Group Limited (ASX:WOW)

Woolworths, a general merchandise and food retailer, has more than 3000 stores and is a trusted partner of thousands of manufacturers and local farmers. The company serves more than 29 million customers every week. 

Recently, the company was busy in expanding its online marketplace business by securing 80% interest in Mydeal.Com Au LTD. MyDeal offers significant marketplace capabilities across homeware, furniture and other bulky goods. 

In May 2022, WOW shared the sales results for the third quarter of FY22.during that quarter, the group eCommerce sales increased by 33.4% to AU$1,456 million on prior corresponding period (pcp) despite food chain-related issues eCommerce and Covid-19 related disruptions. 

B2C grew by 38.1% to AU$1,127 million. The external environmental conditions lead to increased cases of cancelled or delayed orders and a reduction in stock. 

To enhance the eCommerce customer experience, the company launched numerous features, such as the launch of green windows and my order capabilities in the application. This feature empowers the customers to decrease their carbon footprint by creating an alignment between the delivery time of neighbours.

The shares of Woolworths closed 1.13% higher at AU$38.61 per share, with a market capitalisation of AU$46.34 billion. In a month, the share price surged by 3.18% and year-to-date gain is 0.36%. In last five years, the share price increased by 68.68%.

The 52-week range of WOW is AU$32.620 to AU$42.660.

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