ABC News – What Coles and Woolies can do to rescue their reputations after fake discount claims
Last week, I appeared on ABC News to discuss what Coles (ASX:COL) and Woolworths (ASX:WOW) can do to rebuild their reputations after accusations of fake discount claims, which caused a drop in both share prices. Coles is set to defend itself to the Australian Compeititon & Consumer Commission (ACCC), but both companies must act quickly to regain public trust. One of them has the chance to rally community support by being the first to address the issues openly and make meaningful changes to their pricing strategies.
You can watch the full segment here: ABC News – What Coles and Woolies can do to rescue their reputations after fake discount claims
The Montgomery Fund and the Montgomery [Private] Fund owns shares in Woolworths. This article was prepared 1 October 2024 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Woolworths, you should seek financial advice.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Ping
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My view is whether or not the discount is fake or not is not important. The bottom line is what price the consumer is paying and are they happy to pay that price. If they are happy they should make a purchase, if not they should look around to find a cheaper one (if they can).
When I go to the supermarket, I just look at the price, not the discount ads they promote.
Roger Montgomery
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That’s a good tip!