This article is from the Australian Property Journal archive
COLES has posted a healthy 5% increase in total sales, at $9.838 billion, as it prepares for its $3.9 billion spin-off from parent Wesfarmers, and the introduction of a new small-format offering through inner suburbs and two new automated distribution centres.
Its supermarkets saw a 5.8% uplift in sales through the September quarter to $7.657 billion, while liquor was up 2.1% and convenience by 2.5%.
Managing director, Rob Scott said that the results were driven by the “Little Shop” promotional campaign, improved in-store execution and investments in flybuys promotions.
“Strong growth in basket size, transaction numbers and units sold, as well as improvements in fresh market share supported the sales result,” he said.
Coles Online achieved over 30% sales growth for the quarter and is on track to surpass $1 billion of sales for the current financial year, and investment into logistics has taken the number of Click & Collect locations to more than 1,000 across its network.
Earlier this month, Coles entered into a heads of agreement with German group Witron to develop the “automated ambient distribution centres” over a five-year period. Witron has completed more than 50 automated projects for retailers across the world.
Major rival Woolworths is set to open a $350 million automated distribution centre in Melbourne’s east next year.
Four Coles supermarkets were opened and four closed during the quarter, resulting in a total of 809 supermarkets at the end of the period Five supermarket renewals were completed.
Its new Coles Local store format will be rolled over the next few months, with a maiden site in Melbourne’s leafy eastern suburb of Surrey Hills.
Coles has been looking to offload supermarket and petrol station assets in the lead-up to the shareholder vote that will confirm the demerger. It has just put the Coles Orana in Albany, Coles Vasse and Coles Express Vasse fuel and convenience station in Western Australia’s south-west corner to the market with expectations of more than $50 million.
In July, it offered the newly built Drysdale Coles supermarket near Geelong with hopes of fetching around $25 million, and earlier this year it sold the Parkwood Coles in Perth’s south-east for $31.95 million.
Australian Property Journal
