Woolworths Limited denies major restructure reports

Supermarket business Woolworths Limited (ASX:WOW) is reportedly considering dumping one of its main businesses.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It seems the Chinese walls may have collapsed at some big-hitting city institutions after The Australian newspaper this morning reported rumours that supermarket group Woolworths Limited (ASX: WOW) was considering selling its Big W homeware business.

The reports have been bluntly denied by Woolworths and Credit Suisse the investment bank The Australian newspaper identified as being a party to the talks.

Big W’s performance has been a source of big disappointment for investors with comparable earnings down 18.1% in the last financial year and a tough outlook based on a competitive discount retailer environment.

Rivals include Kmart and Target owned by retailing nemesis Wesfarmers Ltd (ASX: WES), while The Reject Shop Ltd (ASX: TRS) is also a significant presence in the discount retailing space.

The Masters Home Improvement business operated by Woolworths has also disappointed recently with the company blaming competition and the Federal Budget’s impact on consumer confidence.

With Woolworths’ plans to build new growth not travelling smoothly it remains as reliant as ever on the strength of its food and liquor businesses. Sales and margin growth here remain impressive and Woolworths should remain near the top of investors’ shopping lists.

Motley Fool contributor Tom Richardson has no financial interest in any company mentioned. You can find him on Twitter @tommyr345

More on Retail Shares

woman lays on floor with laptop and looks anxious while using credit card
Opinions

Up 40% in a month, is it true ‘times are changing’ for the Kogan share price?

What’s been driving Kogan shares lately?

Read more »

three boxers, two men and a woman, stand in their training wear with fists raised in a fighting stance with serious looks on their faces against a background of a boxing gym.
Retail Shares

Could these devastated ASX shares make a roaring comeback?

At the intersection of technology and retail, e-commerce stocks have plummeted this year. Is it safe to buy or is…

Read more »

An older couple come together in their warm heated home with fire cracker sparklers.
Retail Shares

50% off: Why I think this ASX All Ords share could be a sparkling buy

With its share price cut in half this year, there are three reasons why I like this ASX retail share.

Read more »

A businessman slips and spills his coffee.
Share Fallers

Adore Beauty share price slips 12% following ASX speeding ticket

What went down with Adore Beauty on Wednesday -- other than its share price.

Read more »

Three happy shoppers.
Retail Shares

Why are ASX 200 retail shares having such a stellar run today?

ASX 200 retail shares are on fire today. What's put a rocket under this ASX 200 sector?

Read more »

A young woman in a shop hands her credit card to the cashier
Earnings Results

Super Retail Group share price jumps 8% on soft FY22 results

The retail group has announced mixed results to the market this morning.

Read more »

A smug executive woman wearing glasses and red lipstick blows a kiss to herself as she takes a selfie in a cafe feeling happy about the Adore Beauty share price going up today
Retail Shares

Why is the Adore Beauty share price rocketing 19% on Tuesday?

Could earnings from its peer be behind the stock's gain?

Read more »

A young woman does her Christmas shopping online in her lounge room at home with a Christmas tree in the background.
Retail Shares

Kogan share price drops amid warehousing legal battle

A warehouse legal battle is the latest headache for Kogan shareholders.

Read more »