Jefferies sees Coles court ruling as negative but balanced; impact may level the playing field

Woolworths

14/05/2026 21:27

** An Australian court on Thursday found that Coles COL.AX had misled shoppers by hiking prices on hundreds of goods and then advertising discounts even though the discounted prices were higher than the earlier sale prices

** Jefferies says the Federal Court ruling on Coles is  "negative but balanced", noting price hikes were commercially justified

** Brokerage says this could soften penalties, limit consumer backlash

** Jefferies says forcing retailers to keep products at a "normal" price for a proper period before discounting will likely change their behaviour

** Adds, it is "ultimately positive given it places COL, Woolworths WOW.AX and other competitors on a level playing field

** Jefferies expects major chains to remain rational as inflation picks up and to benefit from the subsequent sales tailwind

** COL down 3.6% this year

 (Reporting by Rajasik Mukherjee in Bengaluru)

 ((Rajasik.Mukherjee@thomsonreuters.com))