Sydney, Feb 3, 2026, 17:34 AEDT — Market closed
- Woolworths shares climbed 0.3% following a rate hike from Australia’s central bank.
- A report highlighted a possible A$300 million sale of a shopping centre.
- Attention shifts to the retailer’s interim results on Feb. 25 and any news on asset sales.
Shares of Woolworths Group Ltd nudged up Tuesday as investors absorbed an unexpected shift in Australian interest rates and considered reports the grocer is preparing a major property sale.
The move was modest, yet the timing is crucial. When policy rates rise, it usually squeezes household budgets and can force supermarkets to maintain discounting—pressure that eventually hits their margins.
Woolworths holds a substantial property portfolio. A definite move to recycle capital—selling assets but retaining store leases—could shift investor views on its cash flow and growth strategy, particularly with results coming up later this month.
Woolworths ended the day 0.32% higher, closing at A$31.01, with intraday moves ranging from A$30.86 to A$31.17. The company is set to release its next earnings on Feb. 25. (Investing)
The Reserve Bank of Australia raised its cash rate target by 25 basis points to 3.85%, marking its first hike in two years. The central bank pointed to stronger-than-expected demand and capacity pressures, warning that inflation is set to remain above target for a while. (Reserve Bank of Australia)
Inside Retail reports Woolworths is close to sealing a deal to offload a shopping-centre portfolio worth around A$300 million, potentially covering up to eight sites along Australia’s east coast. The company declined to provide details, but a spokesperson confirmed that selling developed sites “with Woolworths leases in place” is part of its usual strategy. The group is “reviewing which assets” it plans to put on the market over the next 12 months. (Inside Retail Australia)
A separate ChannelNews report identified the buyer as being connected to property group Shayher through an entity named Forest Endeavour, estimating the portfolio yield at around 5%. (A yield measures annual rent relative to the purchase price, with lower yields typically indicating higher valuations.) The report highlighted property as a strategic asset in the battle among Woolworths and its competitors for locations and customers. (Channelnews)
Still, risks abound. Rising rates could dampen demand for retail property and throw valuations into question. The rumored divestment hasn’t been officially confirmed in any market filing. On top of that, a softer consumer environment could push Woolworths and Coles Group into more aggressive discounting to maintain sales.
Traders will be on alert for any official word on the rumored asset sale in the next session, while keeping an eye on how Australian consumer stocks react following the recent rate hike shocks.
Woolworths’ interim results drop on Feb. 25, and all eyes will be on margin details, discounting trends, and any updates on capital recycling. The interest rate story isn’t done either, as the central bank signaled inflation might remain above its 2–3% target range for a while longer. (Reserve Bank of Australia)
