September was a shocker for the ASX 200, but how did the Woolworths share price stack up?

The supermarket giant outperformed the market last month.

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Key points

  • The Woolworths share price outperformed the ASX 200 in September, posting a 5.9% fall against the index's 7.3% tumble 
  • That saw the supermarket operator trading relatively in line with its home sector 
  • That's despite its $243 million MyDeal acquisition passing a shareholder vote early last month, leading it to be implemented before September was out 

September lived up to its reputation as a terrible month for markets this year. The S&P/ASX 200 Index (ASX: XJO) dumped 7.3% over the course of last month. And it wasn't much better for the Woolworths Group Ltd (ASX: WOW) share price.

Stock in the supermarket operator fell 5.9% over the course of September, closing the month at $33.95.

That was despite some particularly exciting news being released by the ASX 200 favourite over that time.

Let's take a look at what went wrong for the Woolworths share price in September.

What weighed on the Woolworths share price last month?  

The Woolworths share price struggled alongside the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) last month.

The sector dumped 5.8% in September. Though, that saw it post one of the best performances of the ASX 200's 11 sectors.

It's also worth noting that Woolworths' closest peer, Coles Group Ltd (ASX: COL), saw its share price slip 6.4% over the course of last month.

There was plenty of news from Woolies' camp over the 30 days ended 30 September.

Perhaps most exciting, was the finalisation of its acquisition of formerly-ASX-listed MyDeal.com.au.

The supermarket giant proposed to snap up an 80% stake in the online marketplace – thereby taking it off the market – in May for an enterprise value of $242.6 million.

MyDeal's shareholders voted in favour of the plan early last month and it was implemented before September was out.

Additionally, Woolworths announced several leadership changes last month.

It revealed the appointment of Daniel Hake to the position of Big W managing director.

It also announced Von Ingram had been appointed to the role of managing director of Woolworths' non-food retail businesses, including Big W, MyDeal, HealthyLife, and PetCulture.

Sadly, none of last month's announcements proved enough to significantly boost the Woolworths share price.

At the end of September, it was 11.75% lower than it started 2022. For comparison, the ASX 200 dumped 14.7% over the first nine months of the year.

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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