Coles reports steady revenue growth in supermarkets and liquor
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Coles says its third-quarter revenue was up 3.7 per cent, from $9.065 billion to $9.4 billion this year, citing volume growth and its value offering resonating with value-conscious consumers.
E-commerce sales increased by 25.7 per cent to $1.1 billion during this period with an 11.3 per cent increase in penetration.
Sales revenue for products exclusive to Coles saw a 4.5 per cent increase to $3.2 billion, with the Coles Finest range recording a revenue growth of 13.7 per cent.
Total supermarket inflation increased slightly, from 1.4 per cent to 1.5 per cent year on year in the third quarter, despite the impact of flooding in Far North Queensland in February and Cyclone Alfred on Southeast Queensland and northern NSW in March.
Livestock inflation was mainly seen across lamb, pork and poultry categories by increases in costs, while fresh produce inflation was elevated as a result of Cyclone Alfred and the cycling of abundant supply.
A deflation was reported in the categories of health and home, offsetting higher coffee and chocolate prices.
Coles opened two new stores, with two closings and eight renewals during the quarter.
Liquor sales revenue rose by 3.4 per cent to $813 million, benefiting from the addition of 31 net new liquor stores over the last year, including the acquisition of 20 stores in Tasmania last June.
E-commerce sales revenue for liquor was recorded at $52 million, a 18.2 percent increase from the same period last year, with a penetration rate of 6.5 percent.
The Simply Liquorland program was announced in March, which will see Coles converting Vintage Cellars and First Choice Liquor Market stores into Liquorland.
“We are pleased to have delivered another solid quarter of sales growth, particularly as we were cycling a very strong third quarter in FY24,” said Coles group CEO Leah Weckert.
“These results reflect the continued investments we are making in value and in improving the shopping
experience for our customers both in store and online.”
Questions & Answers
Q.Which product categories saw increased inflation during the third quarter?
Which product categories saw increased inflation during the third quarter?
Livestock inflation mainly affected lamb, pork, and poultry due to increased costs. Fresh produce inflation was also elevated, partly due to Cyclone Alfred and changes in supply cycles.
Q.What contributed to the increase in liquor sales revenue for Coles?
What contributed to the increase in liquor sales revenue for Coles?
Liquor sales revenue rose, partly benefiting from adding 31 net new liquor stores over the last year. This included acquiring 20 stores in Tasmania last June, which bolstered their network.
Q.How did Coles' e-commerce performance compare between supermarkets and liquor?
How did Coles' e-commerce performance compare between supermarkets and liquor?
Supermarket e-commerce sales grew by 25.7 per cent to $1.1 billion with an 11.3 per cent penetration. Liquor e-commerce sales increased by 18.2 per cent to $52 million, with a 6.5 per cent penetration rate.
Q.What is the 'Simply Liquorland' program mentioned in the article?
What is the 'Simply Liquorland' program mentioned in the article?
The Simply Liquorland program, announced in March, involves Coles converting some of its Vintage Cellars and First Choice Liquor Market stores into Liquorland outlets. This is a strategic move for their liquor business.
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