Coles' margins to fall short of Woolworths
The AFR reported that Coles' margins will fall after its demerger from Westfarmers, and that margins in food, liquor, and convenience/fuel will undershoot those at Woolworths. A JPMorgan analyst notes that Coles' total earnings before tax will fall from a reported $1.5 billion in 2018 to $1.49 billion in 2019, with $55 million in new corporate overheads (as if their cost base wasn't too high already). In review of the article, there is some fundamental missing information - what about the impact of Aldi, Costco, and soon Kaufland on the supermarket segment? And, let us assure you - it will continue to grow.