Woolworths has no future in its present form, according to a leading investment bank.
Citigroup retail analyst Bruce Hubbard believes the retailer’s stores are “worthless”, according to a report in The Times, and concludes: “We are far from persuaded that the retail chain can lay claim to any equity value.”
He goes on: “The past three to four years has seen a widely-respected management team lose its battle against the competitive forces of a dire retail market.
“Right now we look to be heading into a non-food consumer recession. Woolworths is not a chain where you would ride out such a downturn. Put simply, this is not an equity that long-term investors should engage with.”
Hubbard added that the 800-plus Woolworth stores suffered from lack of scale and poor locations.