October 24, 2013
The Age
Coles posted a 4.9 per cent increase in first-quarter food, liquor and convenience sales as consumer confidence rose after the national election on September 7.
Sales from supermarkets, liquor-store and convenience chains reached $8.9 billion in the three months ended September, Perth-based Wesfarmers said in a statement today. Those from food and liquor stores open at least 12 months increased 3.4 per cent, compared with 4 per cent growth expected by the median of four analysts surveyed by Bloomberg.
Wesfarmers is the first major Australian retailer to report quarterly results after the September 7 election, in which Prime Minister Tony Abbott’s Liberal-National coalition won control from the Labor party. Australian consumer confidence hit its highest level in almost three years in September after interest rates were cut to a record-low 2.5 per cent and the election victory ended three years of minority government.
‘‘Consumers have collectively upgraded their assessment of the economy,’’ according to a JPMorgan note to clients. ‘‘An improvement in the growth outlook for the region, solid price gains across the housing sector, and the change in government’’ were responsible for the improvement, they wrote.
Wesfarmers shares fell 0.5 per cent to $42 in Sydney yesterday. The stock has advanced 14 per cent this year, trailing the 15 per cent gain for the S&P/ASX 200 index.
Sales from the Bunnings home-improvement outlets rose 10.3 per cent to A$1.99 billion while those from Target, Australia’s biggest department store chain by outlet numbers, dropped 6.1 per cent to A$789 million. Sales at the discount Kmart department store chain increased 4.6 per cent to A$970 million.
Food and liquor prices fell 2.5 per cent during the quarter due to ‘‘significant produce deflation’’ and discounting, according to the statement.
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