Woolworths (ASX: WOW) share price up amid new 'dark store' plans

The retail giant has submitted plans to open a new online customer fulfilment centre in Sydney

| More on:

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 in the green. By close of trade today, shares in the retailer were selling for $38.21 – up 0.53%. For context, the S&P/ASX 200 Index (ASX: XJO) ended the day 0.02% lower.

The positive price rise comes after The Australian reported Woolworths will be launching its first 'dark store'.

Let's take a closer look at the news.

Woolworths' new dark store

Woolworths has submitted plans to open a dark store in the southern suburbs of Sydney. A dark store is only for the fulfilment of online orders – including pick-up for the first time, and delivery.

The Australian says this facility is just one of several similar sites that will be developed as the company focuses on online and suburban sales.

"To keep pace with customer expectations, we're planning to open a new customer fulfilment centre in (southern Sydney) to offer more delivery windows and an even more reliable service to our online shoppers," Woolworths director of e-commerce Annette Karatoni told the paper.

E-commerce sales increased 63% across the group in the third quarter of FY21 to $1.3 billion. Its Australian food division saw e-commerce revenue increase 90.5% to $878 million. E-commerce sales for New Zealand food, Big W, and the now demerged Endeavour Group Ltd (ASX: EDV) increased 37.9%, 34.8%, and 23.8% respectively.

Investors don't seem to mind this expansion into digital sales, judging by the 17.4% rise in the Woolworths share price over the past year.

The company has 3, soon to be 4, of what it calls "micro-fulfilment centres" that act in a similar capacity, but for delivery orders only. Woolworths also said it would build an automated customer fulfilment centre in Auburn in Sydney's western suburbs.

Woolworths share price snapshot

Year to date, Woolworths shares have increased around 12.7%. That includes the 15% fall in value the company saw on the day of its demerger with Endeavour Group.

The current Woolworths share price is only 70 cents lower than its 52-week record of $38.91.

Woolworths has a market capitalisation of around $48 billion.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A young man punches the air in delight as he reacts to great news on his mobile phone.
Consumer Staples & Discretionary Shares

A2 Milk shares rocket 18% on guidance upgrade and big dividend news

The infant formula company is finally going to start paying dividends to shareholders.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Consumer Staples & Discretionary Shares

Why is this ASX 300 stock crashing 15% today?

Let's see how this popular stock is performing so far in FY 2025.

Read more »

Happy couple laughing while shopping in supermarket
Consumer Staples & Discretionary Shares

Coles shares: Broker says the 'risk-reward is attractive'

Ord Minnett has good things to say about the supermarket giant following its quarterly update.

Read more »

A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.
Consumer Staples & Discretionary Shares

Down 20% this year, can Woolworths shares catch a break?

The headlines continue this week.

Read more »

A man looks sadly away from his computer screen as he holds a slice of pizza in his hand with an open pizza box in front of him on his desk.
Consumer Staples & Discretionary Shares

3 reasons this expert is selling Domino's shares now

Down 48% in 2024, why this investing expert recommends selling Domino’s shares.

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 »

woman holding man's hand as he falls representing ups and downs of ASX investing
Consumer Staples & Discretionary Shares

Why did this ASX 200 stock just crash 11%?

Investors appear nervous about a $475 million acquisition.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Guess which ASX All Ords share is soaring on 21% FY 2024 growth

Investors are piling into the ASX All Ords share today. Let’s find out why.

Read more »