Woolworths (ASX:WOW) share price up as stores converted to online hubs

Western Sydney is set to have two fewer supermarkets as Woolworths repurposes the stores to be distribution hubs.

| More on:
Male supermarket worker stands in front of a crate of fresh lettuce, fulfilling online shopping orders.

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 today as the company announces it's converting two Western Sydney supermarkets into online delivery hubs.

Woolworths' Cecil Hills and Fairfield supermarkets will soon close temporarily as part of activity to support the company's online delivery service.

Right now, the Woolworths share price is $39.49, 0.8% higher than its previous close.

Let's take a closer at today's news from Woolworths.

Supermarkets converted to online hubs

The Woolworths share price is up amid news two Western Sydney supermarkets will close.

Woolies will repurpose the supermarkets into online order distribution hubs. The new hubs will help the supermarket giant fill thousands more online orders each week.

Woolworths Fairfield will close to in-store customers at 10pm tonight.

All staff will continue to work at the hubs, charged with packing online orders.

The same fate awaits Woolworths Cecil Hills. It will close to in-store shoppers from 10pm on Friday.

According to Woolworths, they selected these stores to minimise the impact on local shoppers. Each site has between three and four Woolworths stores within a 5-kilometre radius.

Woolworths is also looking to hire 200 new staff members in Sydney to help deliver online and direct-to-boot orders.

Commentary from management

Woolworths' operations manager for Western Sydney, Ian Roper, commented on the news that might be driving the company's share price today:

The demand for online delivery continues to grow, particularly in Western Sydney, with more customers in self-isolation or seeking to limit their outings…

It's an uncertain time for many in Sydney, and this will provide extra delivery capacity where it's most needed to support the essential grocery needs of many more customers online.

Woolworths share price snapshot

The Woolworths share price has been having a good year so far.

It's currently 13.77% higher than it was at the start of 2021. It has also increased by 12% since this time last year.

The retail monolith has a market capitalisation of $50 billion, with approximately 1.2 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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 Retail Shares

A smiling woman at a hardware shop selects paint colours from a wall display.
Retail Shares

Wesfarmers shares recently hit a 52-week high. Can they go higher?

This business continues to impress investors.

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
Retail Shares

Would Warren Buffett buy Lovisa shares right now?

Is this a sparkly opportunity?

Read more »

Happy shopper at a clothes shop.
Earnings Results

Why did Myer shares just rocket 9%?

Investors are piling into Myer shares on Friday. But why?

Read more »

a thoughtful shopper with shopping bags wearing sparkly gold dress and matching shoes reclines on a chair with hand to chin in thought.
Retail Shares

Can Lovisa's new high profile CEO take Lovisa shares to new heights?

Is Lovisa about to embark on a new era of growth?

Read more »

A woman sits on sofa pondering a question.
Retail Shares

After soaring 244% in 5 years, how much further upside does Macquarie tip for Nick Scali shares?

The broker's expectations remain steady.

Read more »

Girl with make up and jewellery posing.
Retail Shares

Buying the dip: $5,000 invested in Lovisa shares a month ago is now worth…

It's been an outstanding first month for new Lovisa shareholders.

Read more »

Woman checking out new iPads.
Retail Shares

JB Hi-Fi share price sinks on sales growth figures

JB Hi-Fi shares are under pressure on Wednesday. But why?

Read more »

a close up of a motorcycle's front wheel and body on the open road with another motorcycle rider in the background cruising behind the leading driver.
Retail Shares

Up 100% in 11 months, can this small-cap ASX stock keep flying higher?

This business has delivered huge returns. Is it still a buy?

Read more »