Coles posts record $9.4b Christmas sales

AAP
February 02, 2012

COLES had its best ever Christmas sales in 2011, which contributed to a 7.3 per cent rise in first half sales to $17.5 billion, its owner Wesfarmers says.

Despite the tough retail environment and widespread price deflation, Coles and Bunnings showed good sales growth in the six months to December 31, and particularly in the three months to December, Wesfarmers managing director Richard Goyder said.

Coles’ sales in the three months to December were $9.4 billion, up 6.7 per cent from the previous corresponding period.

“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,” Mr Goyder said.

Home improvement and office supplies, which includes the Bunnings business, were up 4.8 per cent in the three months to December to $2.4 billion..

Bunnings’ sales growth was driven by new store openings and growth in its consumer and commercial areas, Mr Goyder said.

First-half sales fell for Target and Kmart, but Mr Goyder said December sales for Target were 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.

Consumer sentiment remained subdued, Mr Goyder said.

Each of the Wesfarmers retail businesses had appropriate levels of good quality inventory on hand, which would be of benefit going into the second half, he said.