The Woolworths Group Ltd (ASX: WOW) share price is trading lower on Tuesday.
In afternoon trade, the retail giant's shares are down almost 1.5% to $38.50.
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What's going on with the Woolworths share price?
While the market is trading lower today, together with rival Coles Group Ltd (ASX: COL), Woolworths is falling more than both.
This may be due to news that the company is spending big on its supermarkets in New Zealand.
According to the company's release, Woolworths has announced a long-term commitment to delivering New Zealand's best supermarket experiences for customers with an accelerated transformation programme underway for the Countdown business.
The release reveals that the transformation includes more value for customers through a refreshed loyalty programme with the launch of Everyday Rewards for New Zealand planned for early 2024.
There will also be a significant investment planned with over NZ$400 million (A$370 million) over the next three years allocated to a renewal of the store network, with a focus on older stores across the country.
Woolworths also aims to develop more convenient eCommerce shopping options, a deeper connection to grassroots community activities, and further commitment to top quality fruit and vegetables. The latter will see a state-of-the-art Christchurch Fresh Distribution Centre opening in 2024, which will complement the Auckland Fresh Distribution Centre which opened last year.
Counting down Countdown's days
The company has also revealed that the Countdown brand will soon disappear. Its supermarkets will start to be rebranded as Woolworths Supermarkets New Zealand from 2024. Management believes the name change will be a success given the brand's long history in the country.
Woolworths CEO, Brad Banducci, commented:
I'm excited by today's announcement and what it means for our continued commitment to New Zealand and its ongoing importance to Woolworths Group. The next stage of our transformation and the rebranding of our stores to Woolworths Supermarkets New Zealand, means we're doubling down on our trans-Tasman connection to bring the very best to our Kiwi customers. That includes a refreshed loyalty programme focused on providing more value and a materially improved fresh offer.
