Coles (ASX:COL) share price on watch amid latest push to Kmart market

The supermarket giant’s shares will be in the spotlight today. Here’s why

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The Coles Group Ltd (ASX: COL) share price will be in focus today.  

Investors will be keeping an eye on the supermarket giant amid its latest push to expand into the premium homeware market.

Let’s take a closer look.

Why are investors watching the Coles share price?

Coles is one of the most trusted brands in Australia and plans to grow its market share by expanding into premium homewares.

According to a recent article in The Australian, the supermarket giant has struck a deal with celebrity chef Curtis Stone.

Stone’s high-end cookware, which has been popular on the US Home Shopping Network, is set to be sold exclusively at Coles. The high-quality cookware and utensils will be available to shoppers in an affordable price range.

With this latest deal, Coles looks to expand into the premium homewares sector dominated by Kmart, which is operated by Wesfarmers Ltd (ASX: WES).

Coles is not alone, with rival supermarket giant Woolworths Group Ltd (ASX: WOW) launching a new range of home accessories in August.

More on Coles

Last month, Coles released its full-year report for FY21 which noted a bumper year for the supermarket giant.  

The company’s report was highlighted by a 3.1% increase in sales revenue for the year of $38,562 million.

Other highlights from Coles’ report included;

Coles cited several initiatives for its surging grocery segment, including the continued roll-out of its ‘Click & Collect’ service.

Outlook on the Coles share price

Since the start of the year, shares in the supermarket behemoth are down more than 6%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has managed to claw 11% higher in 2021.

Despite the subdued performance, the Coles share price has support from various institutions.

Most recently, leading broker Morgans retained its add rating on the company with a $19.80 share price target.

According to analysts, Coles is well placed to benefit from people working from home and consuming more due to COVID-19 lockdowns.

The Coles share price closed yesterday’s session at $17.28.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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