Woolworths provides update on the impact of COVID-19 restrictions

Woolworths Group Ltd (ASX:WOW) has announced how stage four restrictions in metropolitan Melbourne will impacts its operations…

| More on:

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

The Woolworths Group Ltd (ASX: WOW) share price was a strong performer on Tuesday.

The conglomerate's shares charged over 2% higher to finish the day at $39.99.

Why did the Woolworths share price push higher?

Investors appear to have been buying Woolworths shares on Tuesday after the Victorian Government announced which businesses will be forced to close and which may stay open following the stage four lockdowns in metropolitan Melbourne.

As with rival Wesfarmers Ltd (ASX: WES), Woolworths will not be disrupted as much as some retailers.

What will happen to Woolworths' Victorian stores?

This afternoon the company revealed how the lockdown will impact its businesses. According to the release, all its 22 BIG W stores in metropolitan Melbourne will be closed for six weeks from tomorrow under stage four restrictions.

Nine BIG W stores in regional Victoria will remain open for customers under Stage Three restrictions, with the remaining 148 BIG W stores outside Victoria continuing to trade as normal.

While BIG W's doors may be closing in Melbourne, that won't mean shoppers can't still purchase goods. BIG W will provide contactless in-store pick up services from all stores and drive up services in 15 of the 22 impacted stores. It will also continue to offer contactless home delivery to all Victorians.

The company's ALH Hotels business had already closed 77 of its 80 venues in Victoria during the stage three restrictions. The remaining venues will close their doors tomorrow, with those outside Victoria continuing under applicable state regulations.

Woolworths supermarkets will remain open largely as normal during stage four. So there's certainly no need to go out and panic buy items such as toilet roll.

Woolworths Group CEO, Brad Banducci, commented: "These are challenging times in Victoria and I can only imagine the stress and anxiety being felt by the entire community. We are focused on doing everything we can to minimise the impact on our team members, including temporary opportunities to support other businesses in the Woolworths Group where possible."

"We remain committed to doing whatever it takes to help keep our team and customers safe in Victoria and right across Australia," he concluded.

Woolworths intends to provide a further update with its FY 2020 results on 27 August.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »