Sydney, Feb 17, 2026, 18:11 AEDT — The market has closed.
- Woolworths ended the day flat, closing at A$31.96 on Tuesday.
- Investors are bracing for Woolworths’ half-year results, set for Feb. 25.
- The ACCC’s case against Coles has brought supermarket discounting back into the spotlight.
Woolworths Group Ltd (WOW.AX) closed out Tuesday unchanged at A$31.96. Not much action on the tape, with investors seeming more focused on the upcoming earnings next week and the escalating legal battle about supermarket discounting.
Woolworths is set to report half-year numbers on Feb. 25, with investors zeroed in on just how aggressively the supermarket operator is still discounting—and what those lower prices are yielding in extra sales volume.
Australian shares edged up, with the S&P/ASX 200 adding 21.8 points, or 0.24%, to finish at 8,958.9. Traders sifted through the Reserve Bank of Australia’s February minutes, looking for any hints on where rates might be headed next. According to RBC Capital Markets macro rates strategist Robert Thompson, the minutes struck a “slightly more balanced” tone compared to the initial statement from the meeting, though he still characterized them as “hawkish” — with a bias toward higher rates. ABC News
The biggest risk for supermarkets right now is in the courtroom. Coles faces a Federal Court challenge over its “Down Down” campaign, after the Australian Competition and Consumer Commission took action. Woolworths may soon be in the same position, with a similar case looming. Both are being scrutinized for how they run promotions, pushing their pricing strategies into the legal spotlight. The Guardian
Former ACCC chair Allan Fels described the lawsuit to ABC News as “the case of the century,” warning that “the stakes are enormous” and that the outcome could ripple far past groceries, potentially shifting how retailers present discounts in general. ACCC chair Gina Cass-Gottlieb, cited by ABC, argued that the discounts in question were “illusory”—essentially, not real. ABC News
The dispute dates to a lawsuit filed in 2024, when the ACCC targeted Woolworths and Coles over “Prices Dropped” and “Down Down” tags across hundreds of items, alleging the signs misled customers. Woolworths, for its part, responded back then that it would examine the regulator’s allegations. ACCC
Not much coming out of companies lately. Woolworths hasn’t posted anything new with the ASX since its board update back on Jan. 29, according to exchange filings. That’s left traders largely relying on sector chatter and waiting for the next earnings release.
The Feb. 25 print isn’t just about that headline number. Underneath, investors will be watching for signs of grocery sales picking up, how aggressive the discounting gets, and if those cost pressures are letting up or still digging in. The real spotlight lands on guidance — how management frames the rest of the year will say a lot about their confidence.
The peer yardstick follows close behind. Coles will drop its HY26 numbers on Feb. 27, giving investors a narrow stretch to decide who’s ahead on value perception—without tipping too much margin in the process.
Still, risks are hard to ignore. Should Woolworths warn on more aggressive price cutting, weaker sales volumes, or sticky expenses, it chips away at the stock’s “defensive” status—the reputation for steady grocery profits in a downturn. And if the regulatory tide turns against the supermarkets on discounting, new promo rules could shake up the playbook in unpredictable ways.
Traders head into Wednesday eyeing the next phase of the Coles hearing, scanning for signals that could pull supermarket stocks. Rate bets are in play too. Investors are still gauging just how far households can handle additional tightening.
