Updates
** 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 and was trading at A$29.72
** Coles last trading at A$19.15
** 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
** Citi terms the recommendations as "benign"
** Analysts at Jefferies say the report did not ask supermarkets to make any forced divestitures and that it reduces earnigs risk
** COL & WOW need to evolve their non-food pricing model to stem channel leakage, but are unlikely to do so until perception settles — Jefferies
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.