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| Modest sales growth for Coles |
   
Posted Date: 02/02/2012
By Robert Stockdill
Coles has reported its best ever Christmas sales in 2011 - glossing over a disappointing core food and grocery performance.
Parent Wesfarmers released first half sales figures this morning for Coles, boasting a 7.3 per cent first half sales rise to $17.5 billion.
But take away the spin and for the first six months of the trading year Coles' food and liquor division (excluding petrol) has achieved a first half growth rate of 4.9 per cent - just 0.6 percentage points more than arch rival Woolworths announced on Tuesday. In the more recent second quarter, which includes the Christmas trading period Coles is so proud of, growth was 4.3 per cent, compared to Woolworths' 4.1.
Coles achieved its 14th consecutive quarter of comparable store sales growth and Wesfarmers MD Richard Goyder said customer numbers and sales units continued to grow faster than sales, reflecting widespread deflation in the category.
"This period delivered a record- breaking Christmas, with Coles achieving its biggest ever sales week as more customers responded to the greater value offered as well as improvements in product quality and in-store service," he said.
Pure comparison with Woolworths' performance is challenging as the two companies release figures with slightly different inclusions and exclusions. While it is clear Coles is boosting customer numbers through its investment in store refurbishments, price strategies and enhanced customer service, the true impact on sales is a little more clouded and the market will be awaiting profit figures to gauge a better comparison of how the fight for the nation's grocery spend is playing out.
Coles' sales in the three months to December were $9.4 billion, up 6.7 per cent from the previous corresponding period. But that figure is skewed by the inclusion of liquor sales. By comparison, Woolworths food and liquor sales rose 4.1 per cent in the quarter, excluding liquor sales.
More tellingly, Woolworths opened 25 new Australian supermarkets in the first half and closed one - Coles opened nine and closed six for a net gain of just three.
Meanwhile, Wesfarmers' home improvement and office supplies division - which includes the Bunnings and Officeworks businesses - rose 4.8 per cent in the three months to December to $2.4 billion. Home improvement sales rose 5.5 per cent in the second quarter, with same store growth up 3.2 per cent. Officeworks' sales rose 0.9 per cent.
Goyder said Bunnings' sales growth was driven by new store openings and growth in its consumer and commercial areas.
He described first-half sales for Target and Kmart as "encouraging". Target sales in the six months to December were down 2.5 per cent on the previous corresponding period at $2.1 billion.
Kmart sales in the same period were down 1.3 per cent at $2.3 billion.
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Thursday, February 02, 2012 by HIS
Hey what about checking the profits of the Utility Companies compared to usage - same thing.
Thursday, February 02, 2012 by Mick Barry
The real story here is that Coles profits came mainly from it's petrol sales. Petrol volume in litres increased by a mere 2.5%. However profits increased by a whopping 17%.
Woolworths were no better on Tuesday reporting a 16.7% increase.
When will the ACCC stop the price gouging of motorists by the supermarkets?
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