Coles, one of Australia’s leading supermarket chains, has announced a significant increase in sales revenue for the first quarter of the fiscal year. The grocer reported a 4.7% rise in supermarket sales revenue, bringing it to nearly AUD 9.2 billion (USD 5.8 billion) for the 13-week period ending on September 24.
In addition, Coles saw a 1.8% increase in liquor sales revenue, totaling AUD 851 million. Overall, the company experienced a 6.7% growth in sales revenue from continuing operations, reaching approximately AUD 10.2 billion.
Looking forward, Coles expects second-quarter sales revenue growth in supermarkets and liquor to remain steady, following a trend similar to the first quarter. Furthermore, the company plans to implement technology solutions to reduce stock loss in over 250 of its most affected stores by the end of the year.
Coles has indicated that total supermarkets price inflation has declined to 3.1% from 5.8% in the previous quarter. This decrease is primarily attributed to deflation in the fresh category. However, when excluding tobacco and fresh items, inflation remains slightly elevated at 5.7% due to higher prices for milk and commodities such as cheese, eggs, and oil.
The grocer also noted a 2.3% deflation in the fresh category, which includes produce, meat, and bakery items. This decrease is a result of elevated prices experienced last year due to severe flooding and cool weather conditions that affected growing conditions.
Coles’ impressive sales growth and ongoing efforts to mitigate stock loss highlight its commitment to providing quality products and services to its customers.