The Woolworths Group Ltd (ASX: WOW) share price is in the rise this afternoon, trading up 2.79% at $37.81.
With the S&P/ASX 200 Index (ASX: XJO) trading down 0.06% today, let’s take a look at what’s helping the Woolworths share price outperform the market.
Lockdowns are back
New COVID-19 lockdowns and travel restrictions are sweeping across the country, with Greater Sydney entering a two-week lockdown until 9 July, and various border closures between states.
With social mobility coming to a grinding halt across many states, this could once again influence higher in-home consumption of supermarket staples.
Previously, in Woolworths’ FY20 full year results, the company cited:
In H2, total sales growth of 10.4% on a normalised basis was driven by COVID pantry-loading and higher in-home consumption through lockdown and community movement restrictions.
While Sydney’s lockdown is only for two weeks (for now), it could still have a notable impact on supermarket sales.
Take Victoria’s experience, for example.
The Australian Bureau of Statistics (ABS) reported a 1.5% increase in Australian food retailing turnover in May 2021, seasonally adjusted.
The jump in food retailing was led by Victoria, which reported a 4.0% increase after the state entered a COVID-related lockdown in late May. Within food retailing, the ABS noted a particularly strong supermarkets turnover.
COVID-19 winners running today
The Woolworths share price joins today’s resurgence of ASX COVID-19 winners.
Notably, ASX e-commerce shares including Temple & Webster Group Ltd (ASX: TPW), Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have rallied 10.33%, 6.23% and 8.02% respectively, possibly influenced by recent lockdown announcements.