Coles has made a strong start to the 2016 financial year, reflecting the ongoing execution of its value-led strategy, improvements to its fresh offer and contributions from new and refurbished stores.
Speaking at Wesfarmers’ 101st annual meeting in Perth on Thursday, Managing Director and CEO Richard Goyder said continued investment in lowering prices and better customer service is driving growth in volumes, transactions and basket size.
“Coles recorded food and liquor price deflation of 1.3 per cent during the first quarter of the 2016 financial year, the strongest level of quarterly deflation recorded in two years,” he said.
“In fact, we estimate that a typical family shopping at Coles is now more than $600 a year better off than they would have been before we acquired the business in 2007. It is important to note that we have provided this benefit to customers while still improving returns to shareholders.
“In a very competitive sector, we are pleased with the continued momentum in our supermarkets business.”
Wesfarmers’ broader retail portfolio is also performing well for the company.
“As mentioned in our recently released quarterly sales update, retail sales for the first quarter of the financial year across our retail portfolio have been pleasing, supported by the continued reinvestment of productivity improvements into lower prices, improved customer service, better ranges and further store network optimisation,” Mr Goyder said.