Woolworths Group Limited (WOW) is an operator of supermarkets and department stores in Australia and New Zealand, established in 1924 and listed on the ASX in 1993. It holds the largest share (~37%) of Australia's grocery retail market. FY 25 revenue mix: Australian Food 74%, New Zealand Food 11%, Australian B2B 6%, W Living (BIG W) 8%.

Dominant ~37% share of Australian grocery retail provides pricing and scale advantages, reinforced by the WooliesX data/loyalty ecosystem and e-commerce investments (MyDeal 80% stake, Quantium 75% stake). Moat is moderated by fierce competition from Coles and ALDI, and low switching costs on staples.

• Q3 FY 26 (research note 05/11/2026): Australian Food strength offset New Zealand softness; government living-cost relief (tax cuts, cheaper medicines) a revenue tailwind.
• Supply chain transformation underway; net benefits guided only from FY 28 (Jun.), keeping margins soft near term.
• BIG W turnaround uncertain: Prolonged losses; repositioning toward lower-priced products, but profit improvement hinges on volume recovery.
• FY 25 EPS -41% Y/Y (ex-FY 24 impairments); FY 26E ROE guided ~26%, below FY 21–25 avg of 29%.
• Scorecard: Relative Strength Rank STRONG (88/99); SPGMI Quality B-; Street 1 Buy / 8 Hold / 2 Sell.

• Soft consumer spending: Weaker-than-expected demand drags revenue.
• Margin pressure: Supply chain transformation costs + BIG W deterioration; cost inflation outpacing pricing.
• P/E distortion: Trailing P/E of 82.5x reflects depressed FY 25 EPS; normalizes on operating EPS (~43x FY 22 base).