COL -4.46%: The Supermarket was hit today after announcing more aggressive growth plans that require large amounts of money to execute on. Capital investment will go from $1.1 billion in FY21 to $1.4 billion in FY22 highlighting the costly nature of keeping up with a sector that is experiencing rapid change. Reading between the lines, it also speaks to the perception that under Wesfarmers (WES) ownership they didn’t invest enough and that’s finally coming home to roost. They still have a lot to do to catch up to Woolies.
MM are neutral Coles around $16.30
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