Comparative and Development Study of Woolworths (WWS) & Coles Based on Financial Analysis

Abstract

WWS and Coles are the duopoly of grocery retailing in Australia, with a combined market share of more than half. The advent of the e-commerce era has brought both crisis and opportunity to the traditional grocery retailing industry. The purpose of this paper is to explore the optimization proposals of the financial situation of the two companies in the new retail era, while also providing recommendations for the sustainable development of the industry. According to the financial statements of the two companies, the analysis was conducted index through solvency, profitability, and operating capacity. The analysis shows that both WWS and Coles are slightly behind the global industry leader-Walmart (WM), in terms of solvency. In terms of profitability, Coles has a slight edge, while the two companies are closely matched in terms of operating capacity. Based on the analysis results and reasons, provide targeted improvement suggestions for the companies and industry, including optimizing inventory management, accounts receivable management, etc.