Share to sell – Woolworths (WOW)
Posted on September 23, 2015
Woolworths’ recent results were weak and the company is under significant pressure from competitors.
The underlying grocery business saw margin decline while Big W and Masters were weaker than expected.
The results were the worst for the supermarket and retail giant since 2012.
Things aren’t likely to pick up anytime soon either, with Aldi recently announcing that it not only plans to expand aggressively on the west coast of Australia, but also that it is planning to open even more east coast stores than previously forecast.
Throw into the mix a pricing war with Coles – which Woolworths is losing – and more competition from another German brand, Lidl, and things are looking tough for WOW.
On the technical front, all the bearish evidence we require is in place.