Australia's Woolies, Coles soar after competition watchdog report

Coles

21/03/2025 24:06

** Shares in Australia's major supermarkets rise, Woolworths WOW.AX up 5.6%, while Coles COL.AX gains 4.1%

** Woolworths (Woolies) set for strongest trading session since April 2020

** A report by the Australian Competition and Consumer Commission (ACCC) says supermarket chains have benefited from wider profit margins at a time of rapidly increasing shelf prices

** ACCC recommends measures like publishing package size changes and limiting supermarkets' negotiating power to promote fairness

** Citi analysts find the report consistent with prior expectations and see no call for regulating grocery pricing or promotions

** Both Citi and Jefferies term the recommendations "benign"

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))