The Woolworths Group Ltd (ASX: WOW) share price is edging lower during early afternoon trade on Monday. This follows the supermarket operator's latest supply challenges as the COVID-19 outbreak continues to wreak havoc in Australia.
At the time of writing, Woolworths shares are swapping hands for $37.20 apiece, down 0.43%. In contrast, the broader the S&P/ASX 200 Index (ASX: XJO) is trading at 7,448.3 points, slightly down 0.07%.
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Woolworths shelves stripped bare
Investors are sending the Woolworths share price into negative territory as more news surrounding the supermarket giant's dilemmas come out.
The rapid spread of COVID-19 has forced thousands of people to isolate at home whilst waiting for their test results. This has created a huge disruption to Woolworths' supply chain as a majority of staff are obeying stay-at-home orders. A reported 35% of its distribution centres workers are in self-quarantine.
Notably, Woolworths shelves have been laid bare in stores across the country as a result of the staff shortages. This has resulted in about 50% of delayed deliveries for major product lines.
Management, however, noted that the current supply issues would likely last for the next two to three weeks.
Australian Prime Minister, Scott Morrison stated new measures allowing critical workers to leave quarantine if tested negative is under review. The national cabinet is closely monitoring both New South Wales and Queensland which enacted these changes.
The latest COVID-19 figures have continued to surge to more than 303,800 active cases in New South Wales and 161,050 cases in Victoria. This is a sharp increase from this time last year when the country had been effectively managing the pandemic.
A statement from Woolworths advised that supply issues are greatest in New South Wales stores. Queensland stores are experiencing some disruptions, though they are significantly smaller than those in New South Wales.
In particular, poultry and other meat products are running low due to COVID-challenges faced by suppliers.
Woolworths share price snapshot
It's been a rollercoaster ride for Woolworths shares over the last 12 months, posting a small gain of almost 5%.
Based on valuation grounds, Woolworths commands a market capitalisation of roughly $45.13 billion and has approximately 1.21 billion shares outstanding.
