Send in the drones: Why is the Coles share price taking off today?

Coles has turned off lows in today's session.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Coles shares have spiked today despite no market sensitive news
  • The company did start its drone delivery service in QLD, however
  • The Coles share price is down more than 6% since trading resumed in January

The Coles Group Ltd (ASX: COL) share price is walking higher today despite no market-sensitive news for the company.

After a difficult few months on the chart, Coles shares have turned a small corner and are now up 2.26% in the past month of trade.

Despite this, it's been a challenging period over the past year of trade for the Coles share price, as seen in the chart below.

TradingView Chart
Woman looks amazed and shocked as she looks at her laptop.

Image source: Getty Images

What's up with the Coles share price?

Whilst there's been nothing market sensitive from the company today, noteworthy is the fact that it is launching a new drone delivery service that is making the headlines.

The retailer will launch its drone delivery service in parts of the Gold Coast, QD from next week.

Drones are increasingly being utilised in delivery and Coles will kick things off with essentials such as bread, milk and eggs for the convenience of customers.

In fact, up to 500 of the most popular Coles grocery items will be available for customers to deliver. Alcohol is not available.

The drone delivery program was originally announced by the company back in March.

Partnering with Wing, global on-demand drone delivery service, the company is the first in Australia to utilise the technology in this fashion.

At the time of the announcement, Coles Chief Executive eCommerce Ben Hassing said drone delivery was the "next evolution in delivery technology".

It follows in the footsteps of e-commerce titan Amazon, which utilises drone deliveries for parcels and packages purchased online.

For Coles, its pioneering of technology in Australia will be of interest to many within the tech and finance spaces. Whether it converts to greater sales, or share appreciation remains to be seen.

Factors of weather and also timing are also being considered, seeing as the drones can't fly during the night time.

Coles shareholders would welcome the gains today after a difficult year on the chart. The share price is down nearly 7% since trading resumed in January.

Motley Fool contributor Zach Bristow 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 has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.
Consumer Staples & Discretionary Shares

Should I invest $10,000 in Coles shares?

Even at a record share price, I think Coles remains a useful long-term holding for income-focused investors.

Read more »

A woman looks at a tablet device while in the aisles of a hardware style store amid stacked boxes on shelves representing Bunnings and the Wesfarmers share price
Share Market News

Why Wesfarmers shares still look like a top buy to me

The company’s flexibility gives it more ways to create value than a business locked into one narrow path.

Read more »

Close-up of a woman as she carries shopping bags over her shoulder.
Share Market News

ASX 200 retail shares outperform on growing hopes interest rates have peaked

New data last week suggests the Reserve Bank may keep interest rates on hold for a while.

Read more »

Hand with Australian dollar notes symbolising ex-dividend date.
Consumer Staples & Discretionary Shares

A2 Milk shares jump amid $300 million special dividend

Shareholders are getting a major pay day from the infant formula company.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Consumer Staples & Discretionary Shares

A2 Milk declares $300 million special dividend after securing China approval

A2 Milk declared a $300 million special dividend after securing key regulatory approval in China.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
52-Week Highs

This ASX 200 giant just hit a 52-week high. Is it getting too expensive?

This defensive ASX 200 stock is flying this year.

Read more »

Baby Bunting share price sad looking baby crying
Consumer Staples & Discretionary Shares

Why is this ASX retail stock falling 8.5% today?

Guidance cut triggers sharp sell-off in shares.

Read more »

A man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.
Consumer Staples & Discretionary Shares

Woolworths shares soar to new multi-year high: Buy, sell or hold?

After a bumpy start to the year, the supermarket giant's shares are back in favour with investors.

Read more »