Coles Q3 sales up 4.9%

AAP
April 24, 2012

Wesfarmers says Coles sales has risen almost five per cent in the third quarter but tough trading conditions led to a 4.4 per cent fall in Target sales.

Coles sales were $7.8 billion in the third quarter, up 4.9 per cent from $7.5 billion in the previous corresponding period.
Target sales were $692 million, down 4.4 per cent from $724 million in the prior third quarter.

“Target’s sales during the quarter continued to be negatively affected by tough trading conditions, particularly in entertainment categories,” Wesfarmers said in a statement on Tuesday.

Target’s sales growth was also negatively affected by a comparatively lower level of clearance activity.

Coles food and liquor sales rose 4.1 per cent in the third quarter while convenience store sales were 7.9 per cent higher.

Total home improvement and office supplies, which includes Bunnings hardware, was $2.1 billion, up 4 per cent from $2.1 billion in the prior third quarter.

Sales at KMart were $813 million, up 1.2 per cent from $803 million in the prior period.

In the year to date, total Coles sales have grown 6.6 per cent, while Target sales have fallen 3.0 per cent compared with in the prior corresponding period.

“Coles recorded pleasing sales growth given the record level of price deflation driven by high abundant fresh produce supply and Coles’ continued investment in value,” Wesfarmers managing director Richard Goyder said in a statement.

He said a 4.7 per cent increase in Bunnings sales reflected customers’ continued positive response to its product range and price, as well as the increase in store numbers.

Mr Goyder said all retail divisions continued to make good progress on improving customer service, enhancing merchandise offers and delivering better value.

“Each of the businesses had managed seasonal inventory effectively and were well-positioned for trading in the final quarter,” he said.