Coles share prices, as well as Woolworths, has always been fruitful for investors. The two shopping giants have ruled over the industry of share market in Australia today, and they won’t go away any time soon. Because of this, investors are always interested in how the Coles share prices and Woolworths share prices are doing, as this will determine their return. For many investors, these giants are considered to be safe investments due to their longevity and the constant demand for groceries. Because of this, many people choose these shares as a safe way to make a low return over the long term. However, due to recent events, specifically the COVID-19 pandemic, consumer buying behavior has changed dramatically due to social distancing rules, as well as what people are buying that has changed. This affects the prices of these stocks, and it is important to be aware of changing events in the industry to make successful strategic decisions that will still get a return.
Goldman Sachs, one of the largest investment banks in the world recently commented on the varying Coles share prices and Woolworths stocks manipulated by ongoing pandemic events. These pandemic events include panic buying (involving people buying large amount of stock due to hysteria), social distancing rules which make it harder for more consumers to access shopping centres, travel restrictions which increase the consumer base and general virus scares pushing and pulling people to and from shopping centres. All of these aspects help to increase the Coles share prices and Woolworths share prices, and it is events like these that need to be kept an eye on to determine your investment strategy. Throughout 2020, Coles share prices dropped due to pandemic events, however towards the end of 2020, the cost has slowly started to inflate. We have seen throughout the pandemic the rise in digital shopping, as more and more people are forced into lockdown and into the comfort (or prisons!) of their own homes. The surge in online activity has of course shown a rapid increase in the use of online shopping platforms, including for groceries and other basic necessities. Coles share prices, as well as Woolworths share prices, have shown sharp spikes in value due to this increase in online shopping. For many investors who had current stakes in the company, they would have seen a nice return based on these events.
But the question still stands, is investing now, given Coles share prices, a good move for current investors?
This can be answered simply, with yes.
The corporate giant is making moves to automate its supply chain with an increase in efficiency in mind. This long term plan for supply chain automation will ultimately help to increase Coles share prices and subsequently increase the returns for any current investors. This efficiency combines with the return of normal life within Australia means that there will be a large influx of consumers back to shopping centres, and with that an increase in revenue for the shopping giants. Overall, the return investors will make in the coming future will make it well worth investing given the current Coles share prices making it cheaper to do so now, with a nice return later. Coles share prices are steadily increasing and will continue to do so in the coming future as the threat of the virus slowly, but surely, fades away. For those looking at Coles share prices, invest away, this is likely the time to do it and get in while you can before the surge brings it all the way up.