Why do we own Woolworths Group?

Woolworths Group is Australia’s largest supermarket operator, with a substantial presence in New Zealand. Its core business is grocery retailing through Woolworths supermarkets on both sides of the Tasman, alongside other retail brands including BIG W and Petstock. Millions of customers shop with the group each week for fresh food, groceries, household and personal care products.

A key strength of Woolworths is the defensive nature of its business. Unlike spending on holidays, entertainment or luxury goods, grocery spending holds up well through economic cycles because households continue to buy food and household necessities regardless of conditions. The group’s extensive store network, recognised brand and significant buying power allow it to operate efficiently and offer value to customers. Ongoing investment in online shopping, its Everyday Rewards loyalty program and supply chain improvements further strengthens its competitive position.

Woolworths’ market leadership, strong customer relationships and focus on essential goods provide a solid foundation for long-term investors. While competition and rising operating costs can affect profitability, the group’s scale helps it navigate changing conditions. With stable demand for its core products and growth opportunities in eCommerce and data-driven retail, Woolworths offers investors exposure to a resilient, market-leading business.

ASX-listed Woolworths Group is a direct holding in the Evidentia Quality Core Portfolio, which is held in the Partners Medium Term, Long Term, and Multi-Asset Income Portfolios.