WOW

Woolworths' (ASX:WOW) market value lost about $2 billion yesterday after the supermarket giant warned that profit could grow as little as 2 percent due to consumer caution. Shares dropped 5.6 percent to $25.75, the company's worst one-day fall since February 2009.

Woolies posted a net profit of $2.128 billion after tax for the 52 weeks to June 26, up 5.1 percent from $2.038 billion last period. Sales were up 4.9 percent to $54.506 billion.

Woolworths (ASX:WOW) customers enjoyed a surprise price cut of up to 50 percent on Friday after a glitch hit stores nationwide.

Human error in the company's IT department was cited as the cause, marking down each packaged product by as much as half. The glitch lasted for an hour and was "sorted very quickly," according to a Woolworths spokeswoman.

Woolworths' (ASX:WOW) is fighting for land for its home renovation development project. According to hardware industry experts, hazy laws on planning and not enough sites are proving to be the biggest roadblocks to Woolies and other major retailers' hopes.

Major retailers – Harvey Norman (ASX:HVN) , David Jones (ASX:DJS) , Woolworths (ASX:WOW) , Coles – want to have their own operating hours except during holidays.

Woolworths (ASX:WOW) and Wesfarmers' owned Coles (ASX:WES) hits back on claims by World Growth that they are hurting suppliers by imposing strict environmental standards. According the the US based free market lobby group the retailers are ''harming the poor'' in developing countries who cannot meet the strict environmental requirements.

Woolworths (ASX:WOW) plan to expand its presence into the Indian Market. According to the Australian Financial Review, chief executive Ramnik Narsey of Woolworths India will fly to Mumbai this week.

In a joint venture with Telstra Super, Charter Hall Retail REIT (ASX:CQR) has purchased eight shopping centres worth $266 million from Woolworths (ASX:WOW). The buy was in line with Charter Hall Retail's strategy to expand asset exposure to Australia.

Retail giant Woolworths' (ASX:WOW) new hardware chain will be called Masters Home Improvement, developed by Hulsbosch. Woolies, together with Lowe's Companies of the U.S., is set to open its first store in Braybrook, Melbourne in September or October. The hardware venture would be in direct competition with forerunner Wesfarmers' Bunnings hardware chain.

Coles outrun its premier rival Woolworths as both retail chains slug it out in a price war. For eight successive quarters, Wesfarmers' (ASX:WES) Coles outperformed Woolworths with $5.9 billion sales from its food and liquor division. For the third quarter of the financial year, excluding new store openings, sales increased by 7.1 percent. Woolies on other hand only managed 3.3 percent.

Following Woolworths (ASX:WOW) reported increase in sales in the third quarter of the financial year, chief executive Michael Luscombe has stated that the company will not back down from its ongoing price war with rival Coles.