- The Woolworths share price jumped 3.53% on Friday
- The supermarket giant has been recognised as the most valuable Australian brand
- The S&P/ASX 200 Consumer Discretionary Index ascended 3.27% today
The company’s share price finished the week at $1.19, up 3.53% on yesterday’s close. Meanwhile, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) elevated 3.27%.
Let’s take a look at what’s been happening at the company lately.
Woolworths has just been recognised as the most “valuable” Australian brand and the second “strongest” brand in a report by Brand Finance Australia. This could stand the company in good stead amid the current climate of uncertainty due to COVID-19.
The supermarket giant achieved a 9% surge in brand value to $13.7 billion. Despite Woolworths facing supply challenges during the Omicron wave, the report said:
Holding a 33% market share, Woolworths has been pivotal in keeping the supply chain going throughout the pandemic.
Over the last year, the brand has demonstrated an ability to adapt to the shifting retail landscape, expanding its online capability to better serve its large customer base.
The brand’s strong reputation, loyal customers, and lower risk over the last year helped to navigate any potentially detrimental effects to its brand value caused by Endeavour Group’s demerger, of which Woolworths owned 15%.
Coles Group Ltd (ASX: COL) achieved a 26% surge in brand value to $9.9 billion and was ranked fourth on the list. The Coles share price increased 5.02% today.
In the “strongest” brand category, Woolworths came in second after Bunnings, owned by Wesfarmers Ltd (ASX: WES). Another Wesfarmers business, Officeworks, took third place, with Coles again in fourth.
Brand Finance says it determines the relative strength of brands “through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance”.
There has been little news from Woolworths since the start of the year. Its only release to the market came on January 7, when it announced it had pulled out of the race to acquire pharmacy chain operator Australian Pharmaceutical Industries Ltd (ASX: API).
Woolworths share price snapshot
The Woolworths share price may have gained nearly 4% for the day, but it has fallen 8% since the start of the year.
Its shares have fallen 7.5% over the past month, and 3.6% over the past 12 months.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% over the past year.
Woolworths has a market capitalisation of roughly $42.2 billion based on its current share price.