Woolworths (ASX:WOW) share price lower despite investment update

Woolworths sees the importance of data analytics and has been investing in the space…

| More on:
Falling ASX retail share price represented by sad shopper sitting in mall.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woolworths Group Ltd (ASX: WOW) share price is trading lower on Tuesday despite the release of an announcement.

At the time of writing, the retail conglomerate's shares are down 1% to $41.20.

What did Woolworths announce?

The Woolworths share price is under pressure today despite announcing the successful completion of its Quantium transaction this morning.

According to the release, this transaction has strengthened its partnership with the data science and advanced analytics business, increasing its shareholding from 47% to 75%. Woolworths paid $223 million for the additional stake.

What is Quantium?

Quantium is a world-class data science and advanced analytics business that has been helping Woolworths and its supplier partners to make customer-first decisions across pricing, ranging, and promotions.

It has been growing exponentially in Australia and internationally since Woolworths' original investment back in 2013.

Why did Woolworths increase its stake?

Woolworths' CEO, Brad Banducci, believes that advanced analytics is becoming incredibly important for businesses and expects Quantium to help unlock value.

Commenting on the investment in April, Mr Banducci said: "Advanced analytics is key to improving the experiences, ranges and services we provide to our customers and the support we provide to our teams and suppliers. The way we gather data, interpret it, and protect it, is becoming ever more important."

"Through this transaction, we aspire to bring together Quantium's advanced analytics capability and Woolworths Group's retail capabilities to unlock value across our entire retail ecosystem. By working better together, we aim to transform the rapidly evolving retail sector, helping us better service our customers and support our team and supplier partners," he added.

Quantium will now form part of Woolworths Group, and a new business unit called Q-Retail is being established. Q-Retail will bring together Quantium and Woolworths Group's collective data science and advanced analytics capabilities with a focus on delivering against the company's advanced analytics aspirations.

The Woolworths share price is up 18% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

A smartly-dressed man screams to the sky in a trendy office.
Share Fallers

Why Appen, DroneShield, PWR, and Webjet shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

a car driver sits up and looks alert with wide eyes and an expression of concentration while he holds the wheel of a car.
Share Fallers

Why this ASX All Ordinaries stock just crashed 24%!

Investors are punishing the ASX All Ords company today. Let’s find out why.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Elders, KMD, Lovisa, and Telix shares are dropping today

These shares are missing out on the good times on Tuesday. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Life360, Lovisa, NAB, and Resolute shares are falling today

These shares are starting the week in the red. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »