Coles has reported impressive sales figures for its supermarkets, with a 5.1% increase in revenue over the last quarter. The retail giant credits this growth to well-planned seasonal campaigns and the expansion of its own product lines.
In its latest quarterly sales update released on Tuesday, Coles revealed that its supermarket revenue hit an impressive $9.1 billion for the 12 weeks ending March 24th.
According to the company’s statement, the sales boost was driven by the successful execution of the “Summer Value Campaign,” which offered discounts on over 300 products, helping customers save money during the warmer months.
But that’s not all! Coles also reported that in-store and online promotions like Australia Day, Valentine’s Day, and the Pokémon Builders collectible campaign were big hits with customers, contributing to the strong sales performance.
While some retailers chose to move away from Australia Day-themed merchandise, Coles continued to stock these products in January, a decision that paid off.
The early arrival of Easter in late March also gave Coles a welcome boost, as the supermarket chain saw “strong trade in the lead-up to Easter.”
As concerns over rising supermarket prices have been in the spotlight recently, Coles emphasised that “providing value for customers remained a priority during the quarter.”
In addition to the Summer Value Campaign, Coles expanded its Simply range, making it easier for shoppers to identify budget-friendly options. The supermarket also placed nearly 1,000 products on “everyday low prices,” further demonstrating its commitment to affordability.
Coles’ Own-Brand Products Continue to Shine
The company’s exclusive product lines, only available at Coles stores, saw an impressive 8.8% increase in sales revenue, reaching $3.1 billion for the quarter. This growth outpaced the sales of proprietary products as customers sought out value-driven options.
While overall price inflation at Coles supermarkets dropped to 2.2% from 3% in the previous quarter, the company acknowledged that some fresh produce categories, such as fruit and meat, continued to experience deflation.
However, bakery items remained subject to elevated inflation due to the high cost of wheat.
Coles’ liquor division’s sales revenue declined 1.9% to $786 million for the quarter. The company attributed this dip to reduced discretionary spending by customers grappling with the rising cost of living.
Overall, the Coles Group reported a 3.4% increase in total sales revenue for the quarter, reaching $10.033 billion.
With its strategic campaigns, value-focused product offerings, and commitment to keeping prices low, Coles has demonstrated its ability to navigate the current economic climate challenges while delivering solid results for the quarter.
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