While the Coles Group Ltd (ASX: COL) share price is down, there is news that may excite shareholders in it or Woolworths Group Ltd (ASX: WOW).
From 1 November, both supermarket giants will begin selling at-home, rapid antigen testing (RAT) for COVID-19.
At the time of writing, shares in Coles are trading for $17.16 – down 2.05%. Meanwhile, the Woolworths share price is 4.10% lower to $38.81. To be clear, there is no suggestion today's news on RAT has any correlation with the share price movement. In fact, for Woolworths, today was also the day the company released its Q1 update.
Let's take a closer look.
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It's going to be easier to get a COVID test
After the Therapeutics Goods Administration (TGA) approved the use of at-home RAT last month, Coles and Woolworths have announced they will sell the product in their stores from 1 November. This is the date the TGA is slated to begin using these tests.
According to the Australian Broadcasting Corporation (ABC), Woolworths said the kits could already be pre-ordered and would sell for between $10 and $15 per test.
"Rapid antigen testing is helping protect our distribution centre team members across Australia from COVID-19," a Woolworths spokesperson told the outlet.
While less accurate than PCR testing (the one done at COVID testing clinics), the results are quicker to obtain and it is easier to do. It only requires a person to provide a small sample of saliva, and then results would be ready in 20 minutes.
Coles says it will sell the product in select stores in every state except South Australia and Western Australia.
These new products may give a boost to the supermarket's revenue. Revenue, of course, can determine how much dividends a company pays. The amount of dividends Coles pays is highly likely to influence the Coles share price.
Coles share price snapshot
Over the past 12 months, the Coles share price has increased 0.29%. Year-to-date, shares in the supermarket are down 7.24%. It is underperforming the ASX 200 when compared to both timeframes.
Since listing on the ASX nearly 3 years ago, shares in the company have appreciated 35.5%. Coles has a 52-week high of $18.94 and a 52-week low of $15.27 per share.
Coles Group has a market capitalisation of approximately $23 billion.
