Coles has released its 2024 first quarter results, with Group sales revenue increasing 3.6% to $10.25 billion.
The retailer’s supermarkets recorded sales revenue of $9.2 billion during the first quarter, an increase of 4.7%. Excluding tobacco sales, which continued to decline in line with industry trends, sales revenue increased by 5.9%. Gross retail sales of $9.5 billion increased by 5.7% and comparable sales grew by 4.6%.
“During the quarter, we continued to focus on providing our customers with more value at the checkout through our ‘Great value. Hands down.’ campaign as well as everyday prices, weekly specials and personalised Flybuys offers,” says Coles Group CEO Leah Weckert.
“Our expanded Exclusive to Coles brand portfolio across food and liquor has never been more important, while collectible campaigns have also provided value to customers.”
The Exclusive to Coles range experienced strong sales growth for the fourth consecutive quarter with sales revenue increasing by 9.4% to $3.2 billion compared to the prior corresponding period. Customers also continued to move into healthier options, according to the retailer, with revenue from Coles Own Brand health and lifestyle brands, including the Wellness Road, I’m Free From and Nature’s Kitchen range, growing by almost 30%.
E-commerce
E-commerce sales increased by 24.6% to $852 million with penetration growing from 7.7% in the prior corresponding period to 9.1%.
Several end-to-end improvements were made in the customer experience, according to Coles, through improved availability, digital shopping experience, seasonal events, personalisation, integration with Flybuys, and platform speed and stability.
Availability and inflation
Ms Weckert says, “pleasingly, for customers”, availability continues to improve and inflation in key categories is moderating.
Volumes were positive in the quarter with stronger food volume growth partly offset by lower volumes in the non-food discretionary categories. Availability metrics continued to improve with delivered in full and delivered in full on time increasing to 97% (90% in second half of 2023) and 92% (84% in second half of 2023) of pre-Covid levels respectively.
Total supermarkets price inflation declined to 3.1% for the quarter (5.8% in fourth quarter of 2023) due to deflation in the fresh category.
Inflation excluding tobacco and fresh also continued to moderate but remained elevated at 5.7% primarily driven by farmgate milk prices and higher commodity prices, including cheese, eggs and oil.
Stores
During the quarter, Coles opened one new store and closed one store, taking the total network to 846 supermarkets.