Coles’ ongoing growth attributed to focus on ‘Every Day value’
Managing Director, John Durkan, has attributed Coles’ ongoing sales growth to the supermarket group’s ‘every day’ low prices strategy.
Parent company Wesfarmers, revealed late last week that Coles sales for the third quarter ended 31 March 2016 were AUD $7.5 billion. This is a 5.9 per cent increase on the previous corresponding quarter in 2015.
“Our continued delivery on ‘Every Day’ value is highlighted by price drops on products important to the family basket, such as roast chicken, Colgate toothpaste and Kleenex tissues,” Durkan said.
“This ongoing commitment to customers has delivered continued sales growth through the quarter and culminated in more customers shopping with us over the Easter period,” he said.
Food sales were up 4.65 per cent during the 2016 Easter trading period when compared to the 2015 Easter trading period.
Third quarter sales for Bunnings equalled AUD $2.6 billion, an 11 per cent increase on the previous corresponding 2015 quarter.
Bunnings Group Chief Executive Officer, John Gillam, said that the hardware chain took advantage of good trading conditions throughout the quarter.
“We continue to make good progress across all our strategic initiatives, with increased brand reach in both physical and digital networks,” Gillam said.
“Ongoing investments in service and value continue to generate favourable customer responses,” he said.
The Officeworks division of Wesfarmers meanwhile generated sales for the quarter of AUD $512 million, a 5.6 per cent increase on the previous corresponding 2015 period.
Officeworks Managing Director Mark Ward, said the results were underpinned by strong sales during the back-to-school period.
“The ongoing work within Officeworks to improve the customer offer continues to produce strong results,” Ward said.
“The business remains focused on driving its ‘every channel’ strategy, and providing customers with a compelling offer by delivering great customer service, providing best value and being a one-stop shop,” he said.
Target and K-mart
Retail subsidiary Target reported sales of AUD $678 million, an increase of 2.3 per cent on the previous corresponding 2015 quarter.
However, department Stores division Chief Executive Officer, Guy Russo, said sales in womenswear, underwear and homewares were all down.
“Due to declining sales momentum, including poorer than expected sell-through of some summer lines, targeted clearance activity was undertaken late in the quarter, further affecting sales and margins,” Russo said.
K-mart sales for the quarter were AUD $1.1. billion, an increase of 17.9 per cent on the previous 2015 corresponding period.
Kmart Managing Director Ian Bailey said Kmart delivered another strong quarter. He said the chain will focus on improving its ranges to provide “even greater” products at low prices in the next quarter.