Woolworths Group Ltd (ASX:WOW) shares surged 5.01% in intraday trading, following the release of the Australian Competition and Consumer Commission's (ACCC) final report on its supermarket inquiry. The report, while identifying Woolworths as one of the world's most profitable supermarkets, failed to find clear evidence of price gouging, providing relief to investors.
The ACCC's year-long investigation culminated in 20 recommendations aimed at increasing transparency, enhancing competition, and creating fairer conditions for suppliers and consumers. Despite the regulator's findings that Woolworths, along with its competitors, has raised product margins over the past five years, the absence of conclusive evidence regarding price gouging allegations appears to have bolstered investor confidence.
Woolworths acknowledged the ACCC's report, stating that many of the recommendations were actions the company had already taken. The supermarket giant emphasized that it already publishes all product prices online, addressing one of the key recommendations in the report. This proactive stance may have contributed to the positive market reaction, as it positions Woolworths as responsive to regulatory concerns and consumer needs.
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