It’s a rough day on the ASX for the Coles Group Ltd (ASX: COL) share price despite the company’s silence.
At the time of writing, the Coles share price is $17.20, down 3.75% from its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 0.22% while the share price of Woolworths has tumbled 8.65%.
Let’s take a look at the news that might be weighing on Coles’ stock this morning.
Coles share price slips amid competitor’s woes
It’s a rough day for the Coles share price after its rival released a worrying trading update that might have inspired a drop in confidence in ASX-listed supermarkets.
This morning, Woolworths updated the market on its performance for the first half of financial year 2022. Within its release, its CEO said that the period’s been “one of the most challenging halves … experienced in recent memory”.
The company stated that it’s had a lacklustre performance due to the impacts of COVID-19‘s Delta strain.
Woolworths has been hit with direct and indirect costs due to COVID-19 outbreaks in the half. Particularly, as the outbreaks caused its supply chain to struggle.
The disruption to stores and distribution centres has resulted in costs of between $60 million and $70 million over the 6-month period.
Though, its customers’ spending patterns began to normalise when lockdowns in New South Wales and Victoria eased in October.
The market might be assuming Coles experienced the same challenges during the first half.
Some COVID-19-related impacts on Coles’ business were included in its results for the first quarter of this financial year.
The supermarket reported it had footed around $75 million of costs associated with employees needing to isolate, extra staff to ensure check-in compliance and lower productivity.
The Coles share price gained 0.12% on the back of the company’s most recent quarterly results. However, it has fallen 7% since the start of 2021.