Sydney, Feb 3, 2026, 17:34 AEDT — Market closed
- Shares of Woolworths edged up 0.3% after Australia’s central bank raised interest rates.
- A report flagged a potential A$300 million deal involving a shopping centre sale.
- Focus turns to the retailer’s interim results due Feb. 25, along with updates on any asset sales.
Shares of Woolworths Group Ltd inched higher Tuesday after an unexpected move in Australian interest rates. Investors also weighed reports that the grocer is gearing up for a significant property sale.
The increase was slight, but the timing matters. Higher policy rates typically tighten household budgets and often compel supermarkets to stick with discounts—adding strain on their profit margins.
Woolworths owns a significant property portfolio. A clear push to recycle capital by selling assets while keeping store leases in place might change how investors view its cash flow and growth plans, especially with earnings due later this month.
Woolworths closed up 0.32% at A$31.01, after trading between A$30.86 and A$31.17 throughout the session. The retailer is scheduled to report its next earnings on Feb. 25. (Investing.com)
The Reserve Bank of Australia lifted its cash rate target by 25 basis points to 3.85%, the first increase in two years. It cited stronger-than-expected demand and capacity pressures, cautioning that inflation will likely stay above target for some time. (Reserve Bank of Australia)
Inside Retail reports Woolworths is nearing a deal to sell a shopping-centre portfolio valued at about A$300 million, potentially involving up to eight locations along Australia’s east coast. The company declined to comment on specifics but confirmed that disposing of developed sites “with Woolworths leases in place” aligns with its standard approach. The group is currently “reviewing which assets” it will offer for sale over the next 12 months. (Inside Retail Australia)
A ChannelNews report singled out the buyer as linked to property group Shayher via an entity called Forest Endeavour, pegging the portfolio yield at about 5%. (Yield reflects annual rent against purchase price; lower yields usually mean higher valuations.) The report pointed to property as a key strategic asset in the competition between Woolworths and its rivals for prime locations and shoppers. (channelnews.com.au)
Risks remain high. Higher interest rates might curb appetite for retail real estate and cloud valuations. The rumored sell-off hasn’t been confirmed in any official market filing. Meanwhile, a weaker consumer climate could force Woolworths and Coles Group to ramp up discounting just to keep sales steady.
Traders are poised for any official news about the rumored asset sale in the next session and will watch closely how Australian consumer stocks respond after recent rate hike shocks.
Woolworths is set to release interim results on Feb. 25, with investors focused on margins, discounting patterns, and any news on capital recycling. The interest rate saga continues, as the central bank warned inflation could stay above its 2–3% target for some time. (Reserve Bank of Australia)
