The Woolworths Group Ltd (ASX: WOW) share price is under selling pressure on Monday despite no market-sensitive announcements.
Shares in the supermarket giant just hit another record low for November, falling to $29.42 apiece in today's session, their lowest mark since the COVID-19 crash in March 2020. At the time of writing, WOW shares are trading at $29.44, down 1.37%.
The plunge reflects a mix of ongoing challenges the chain is facing, from industrial action threats to inflationary pressures, all of which have impacted investor confidence. Let's see what's happening for the Woolworths share price.
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Why is the Woolworths share price down?
Woolworths shares are down on Monday despite no price-sensitive updates from the company or from the market.
But a looming Christmas strike threat is weighing heavily on Woolworths on the operations side.
Reports today suggest The United Workers Union (UWU) recently warned that Woolworths distribution centres across Victoria and NSW could face disruptions if workers' demands for above-inflation pay rises weren't met.
With potential stoppages on the cards, there's concern this could affect the retailer's ability to supply goods during the crucial holiday period, according to The Australian.
It's common knowledge that the Christmas season is the busiest time of year for supermarkets and retailers. The Woolworths share price is sensitive to this seasonality.
According to Statista, Australia recorded an annual turnover of $400 billion during the 2022 Christmas season, which lasts from November through December.
Any slowdown in sales or distribution activity is bound to have ripple effects for Woolworths. How will the product arrive if it isn't distributed first? You can't just sell hopes and dreams. People need food.
Woolworths has acknowledged the threat, with its supply chain division, Primary Connect, enacting contingency plans to minimise potential impacts on food supplies.
There's no saying on what impact potential industrial action in this fashion would have on the company or consumers.
Nonetheless, the uncertainty looks to have rattled investors today, further pressuring the Woolworths share price.
Other factors weighing in
The Woolworths share price has been sensitive to relative softness in the company's operations this year as well.
A $1.5 billion writedown in its New Zealand operations earlier this year led to a $780 million net loss in its half-year results. The unexpected departure of long-time CEO Brad Banducci also weighed in.
Competing ASX retail giant Coles Group Ltd (ASX: COL) has gained market share, with better growth figures than Woolworths throughout 2024.
Coles outperformed in the second half, with 2.6% sales growth compared to Woolworths' 1.2%.
Analysts have mixed views on Woolworths at its current price.
CommSec says consensus rates it a hold. Eleven brokers recommend this, whereas three rate it a buy, and two advise selling.
On the positive side, Goldman Sachs has a buy rating on the Woolworths share price. The broker highlights its ability to strengthen its market presence through digital and store expansion.
Goldman has a price target of $36.20 on the stock. Meanwhile, UBS also rates Woolworths a buy, with a more conservative target of $31.25.
Foolish takeout
The Woolworths share price faces near-term challenges. Some of these aren't directly related to the company. Some are. This has top brokers mixed on the stock, and today's news of potential industrial action around Christmas has only weighed in further.
In the last 12 months, Woolworths stock has slipped more than 17% into the red.
