Coles posts higher sales as more customers prefer to eat at home
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Coles saw higher sales in the first quarter of FY24, attributed to more customers preferring to eat and have entertainment at home to cut back on discretionary spending.
Group sales rose 3.6 percent yearly to $10.25 billion, attributed to growth in both the supermarket and liquor segments.
“During the quarter, we continued to focus on providing our customers with more value at the checkout through our ‘Great value. Hands down’ campaign, as well as everyday prices, weekly specials, and personalized Flybuys, offers,” said Leah Weckert, CEO at Coles.
“We added several features to make it easier and faster for customers to find value through our digital platforms.”
Supermarket sales jumped 4.7 percent to $9.19 billion, while liquor sales inched 1.8 percent higher to $851 million. Sales from other businesses hit $214 million during the quarter.
“Our expanded Exclusive to Coles brand portfolio across food and liquor has never been more important, while collectible campaigns have also provided value to customers. Pleasingly for customers, availability continues to improve, and inflation in key categories is moderating,” said Weckert.
Coles opened one new store and closed one during the quarter.
Questions & Answers
Q.What was the total sales increase for Coles Group in the first quarter of FY24?
What was the total sales increase for Coles Group in the first quarter of FY24?
Coles Group reported a 3.6 percent increase in sales year-on-year, reaching a total of $10.25 billion. This growth was seen across both their supermarket and liquor segments.
Q.Which business segment contributed most significantly to Coles' sales growth during the quarter?
Which business segment contributed most significantly to Coles' sales growth during the quarter?
The supermarket segment was the primary driver of growth, with sales jumping 4.7 percent to $9.19 billion. Liquor sales also increased, but at a slower rate of 1.8 percent.
Q.How did Coles aim to provide value to customers during the quarter, according to the CEO?
How did Coles aim to provide value to customers during the quarter, according to the CEO?
CEO Leah Weckert stated Coles focused on value through their 'Great value. Hands down' campaign, everyday prices, weekly specials, and personalised Flybuys offers. Digital platforms were also enhanced to help customers find value.
Q.Did Coles expand its physical store footprint during the first quarter of FY24?
Did Coles expand its physical store footprint during the first quarter of FY24?
No, Coles did not expand its physical store footprint. The company opened one new store and closed one store during the quarter, resulting in no net change.
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