The Coles Group owns a leading supermarket chain by the same name.
Considering that it’s such a giant, buying its stocks might seem like a good move. We took a closer look at how you can do this below.
Where to Buy Coles’ Shares?
Can you only buy the company’s shares through an online broker? Right now, the answer is yes.
There are so many brokers available, and you will always find someone new to work with. The sites work on multiple operating systems as well – this includes iOS, Android, iPad, macOS, and Windows.
This is the best broker for buying Coles shares in Australia:
Coles Supermarkets commands the second-largest share in the market. It’s 27.6%, which makes them rival Woolworths.
The stores sell various products. The chain has also been around for a while, being founded in 1914. The fact that it has been around for so long is a reason to invest in it.
Although it doesn’t command as much market as Woolies, it is more popular thanks to its affordable prices. You’re met with speedier delivery as well.
As of now, there are 807 stores in Australia. The number only keeps increasing. You might be wondering if there are Coles chains in New Zealand. The answer is yes and no. Although there are no direct outlets, the brand owns Kmart Australia, which has stores in New Zealand.
Over the years, Coles has acquired many brands. One of these is Bi-Lo, which was a major retail giant down under. It is now one of the 807 stores mentioned above.
You can invest in the group on the Australian Securities Exchange. There was a time when you also could have bought and sold its shares from the New Zealand stock exchange and the London one as well.
The group doesn’t just own supermarkets, though. There are subsidiaries in the liquor and convenience store industries as well.
|Company Information||Coles Group|
|Founding date||April 1914|
How to Buy Coles Shares
How can you buy its stocks? You need to work with an online broker. This is a platform that will let you buy and sell assets. The site needs to be connected to the Australian Securities Exchange, as this is where the group trades.
You’ll be happy to know that there are a plethora of brokers around. Make sure that the name you’re working with has been authorized. As an Australian, aim for one that has been authorized by the Australian Securities and Investments Commission.
Major names tend to be verified by different authorities. You’ll find several that have CySEC and other European councils’ stamps of approval.
When choosing the platform, make sure it comes with good market trends and news. There’s no way you can invest in stocks unless you know how the market is doing.
You might be a newbie who has never traded before. Don’t fear, several brokers offer education centers. As you can imagine, some offer extensive resources while others do not.
The next step
Once you find a broker that lets you trade COL, here’s what you need to do:
- Make an account. It might take a couple of minutes; be patient. You’ll need to fill in the bank details as well as verify your identity through your passport or NIC. Proof of where you live would be needed as well.
- Add payment means. You’ll need to fund your account. You can do this via bank transfer, credit or debit card, or e-wallet. Most brokers make you place a minimum deposit.
- Check for Coles’ shares. If the platform is linked with the ASX, it’ll have them. But you might not be able to find them. That’s because the company’s stocks might only be found through its ticker symbol, COL.
- Make a move. You can invest now or later. This is where watching the market becomes important. If you choose to invest now, it’ll be a market order. Doing it later would be a limit order.
- Keep an eye out on its progress. With the company’s stocks at your disposal, it isn’t the end of the road. Watching the shares will tell you if they have gone up in value or not.
Why Buy Coles’ Shares?
Considering everything discussed so far, there are several good reasons to invest in the brand. Let’s talk about them in-depth below.
A Giant Market Command
The group is not going anywhere. It owns Coles Supermarkets which is the second-largest name in the game. The number of stores down under only keep growing. Moreover, the consumer staple industry is very stable, like banking and insurance.
Different Avenues for Cash
The giant was originally owned by Wesfarmers. It was listed on the Australian Securities Exchange separately. When it branched off, several subsidiaries were taken with it. Kmart is owned by Coles’ financial division. This also includes FlyBuys and Officeworks.
One of the most successful segments of the chain is its liquor division. It made A$3.3 billion in revenue from it in 2020. This was an 8% increase compared to 2019. During the last quarter, sales grew by 20.3%. The group’s excellent online service is the reason for this. The company reported a 40.3% increase in online sales that year.
In fact, 20 new liquor stores were opened. However, due to the pandemic, 20 more closed down for good. The total is 910 as of now.
Speaking of having diverse avenues to generate cash, the retail chain made news when it created a supermarket-restaurant hybrid that served both sushi and pizza in the latter half of 2019. It has been quite successful ever since.
Coles continues to grow and its overall sales revenue was AUD 33 billion for 2020. This was a 6.8% increase compared to the previous year.
The company’s overall EBIT was AUD 1310, with a 10.7% from 2019.
The chain has worked hard on its online services – with the world in lockdown, it’s good that it’s known for how easy its website is to use.
Revenue due to online ventures was up 18.1% compared to the previous year – this is from the supermarkets alone. The liquor segment had a boost in online sales by 70% in the fourth quarter and was 40% for the year overall.
The retail giant is a good choice to invest in. However, know that it has many competitors. We talked about three of the most popular alternatives below.
Woolworths is Coles’ biggest rival. The retailer has been around for almost as long. It commands more of the market, though. Right now, Woolies boasts over 900 stores in Australia. The brand has outlets in New Zealand too.
Along with Coles, it is one of the largest companies in the country. In fact, it brings in the most revenue of any company right now. It’s also currently the largest hotel and poker game operator as well as the largest liquor distributor.
You may be wondering how the chain makes revenue by poker machines. It acquired the majority of shares in the Australian Leisure & Hospitality Group. Woolworths claims that it makes over AUD 1 billion from its poker venture a year.
The giant makes its cash through real estate as well. It owns the Shopping Centres Australasia Group.
This doesn’t mean that Woolies hasn’t had its share of unsuccessful projects, though. It started Dank LTD with Lowes. 150 stores were founded in 5 years. Sadly, Woolies lost AUD 227.4 million because of this.
You might want to invest in Coles’ counterpart as it has a bigger presence. Although the pandemic affected all industries, Woolworths made a 10.7% increase in 2020’s first quarter compared to 2019’s Q4. The company grew by 5.9% overall by the end of 2020 thanks to its supermarket stores, as online sales were through the roof – they were up by 86.7%.
Costo doesn’t have as many stores in Australia as Coles does. The number is less than 20. However, it is a name to watch, as it has a major global presence. It’s an American multinational, with Walmart being its direct competitor.
Costo has made the Forbes list 500 several times and is currently known to be the second-largest retailer in the world.
Worldwide, it has 785 outlets with 546 of them being located in the US. The rest are spread across Europe and Asia.
Considering the effects of COVID-19, the revenue Coles’ rival has made is impressive. It went from USD 152,703 million to USD 166,761 million. As you can imagine, this was partly due to the chain’s e-commerce initiatives.
Costo is generally known to have affordable goods, which is why it is such a popular choice among consumers. It was founded in 1976 but has taken the retail industry by storm. To an investor, this is what you want to hear.
Target Australia has no affiliation with the US brand by the same name. This is odd, considering how the brands even have near-identical logos.
Formerly known as Lindsays, the department store was founded in 1926. There are 275 Target outlets across the country as of now, and the number only keeps growing. Target is popular as it offers various goods at affordable prices.
The company has made several smart choices. 2001 was when it experienced its first-ever loss of AUD 43 million. The retail chain immediately changed its management and rebranded itself from being a competitor of Woolworths to a more stylish option with specialty stores.
In 2006, Target turned a $32 million loss into a $68 million profit when Laura Inman was made its managing director.
Unlike Coles, Target has its own line of clothing, which includes women’s lingerie. The line has been successfully marketed by Burlesque superstar Dita Von Tease. The chain’s first collection launched in 2007 and was designed by reputable designer Stella McCartney.
The retailer is owned by Wesfarmers. It’s the largest company in Australia by revenue. Even with COVID-19 to deal with, it was profitable with its sales, making AUD 30,846 billion.
Should You Buy Coles Shares?
We think investing in the company is a good move. That being said, buying Woolworths’ stocks would be an even smarter choice. The giant commands the largest share of the market in both Australia and New Zealand. It is also the largest poker and alcohol distributor, as it owns the majority of the shares in the Australian Leisure & Hospitality Group.
Coles owns a variety of stores, though. Kmart, which is a leading supermarket chain down under is also part of the group. The company also generates a large portion of its revenue through its alcohol sales. In 2020, it made over AUD 3 billion from it. Although Woolies is the largest poker operator in the country, only around AUD 1 billion is made from the machines annually.
COVID-19 will remain a force to be reckoned with in 2021. That’s why it’s impressive how well Coles has done with the e-commerce side of the company despite the pandemic. As we discussed, online sales were up significantly thanks to the lockdowns. However, most stores have been quick to optimize their sites – you might ask yourself, is this really that impressive then?
Let’s sum things up. Buying and selling Coles shares is a good move. However, investing in Woolies might be an even better choice. Its rival is more popular after all.
Whichever option you choose, you’ll have to use an online broker. It should be connected to the Australian Securities Exchange which is a mark of its reliability. Be mindful of the broker you pick as there are so many out there. You want one that has an expert resource centre as well as helpful educational guides to improve your trading knowledge.
Don’t invest in the company unless you’ve been tracking the market. You need to strike at the right time.
Once you are confident with your decision, you can start buying and selling the company’s shares.