Page 10 - Retail World March 2021

NEWS COLES E-COMMERCE LEADS THE CHARGE Coles says it is achieving success in its e-commerce strategies and proving to satisfy customers further. Sales revenue for the half-year to January 3 increased by 8.1 per cent compared with the previous period, to a total of $20.4 billion. Comparable sales growth of 7.2 per cent was achieved in the supermarkets division, 15.1 per cent in liquor and 9.9 per cent in Coles Express. Strong group EBIT and earnings per share growth of 12.1 per cent and 14.5 per cent, respectively, were reported. The company says it is also on track to deliver cost savings of more than $250 million in FY21. Strategic highlights from Coles include e-commerce B2C sales growth of 61 per cent with strategic investments made in user experience and capacity leading to significant improvements in perfect order rate and customer satisfaction. “We’ve now delivered the first 18 months of our refreshed strategy, while ensuring that we support our team members, customers, suppliers and community partners through a volatile and unpredictable Covid-19 year,” Coles Group CEO Steven Cain said. “Coles continued to experience elevated sales as a result of Covid-19, which saw the prior trends of basket consolidation and fewer shopping trips persist during the half. However, transactions were supported in December by international border restrictions which saw more Australians stay at home over the Christmas holiday period. “Total e-commerce sales grew 48 per cent (while B2C e-commerce sales grew 61 per cent) for the half driven by very strong growth in Victoria across click and collect and home delivery. “With a strong balance sheet and team, Coles is well placed to continue delivering on our vision of becoming the most trusted retailer in Australia and grow long-term shareholder value.” Convenience and fuel results Coles Group says it achieved strong convenience store sales driven by local shopping. Total sales revenue increased by 10.5 per cent compared with the previous corresponding period, to $632 million. The retailer says the sales growth was driven by the drinks category, supported by recent investments in fridges and targeted range reviews in healthier drink alternatives. Improved momentum in Victoria followed the easing of government imposed Covid-19 restrictions also supported sales growth, Coles adds. Average weekly fuel volumes of 55.5ml a week were recorded during the half with volumes improving in the second quarter. “The recovery from initial Covid-19 restrictions continued to progress with fuel volumes improving in the second quarter across all states,” Mr Cain said. “As restrictions in Victoria began to ease, fuel volumes trended positively in the early part of December prior to the seasonally quieter Christmas period. “Convenience store sales growth was also strong as \[Coles\] Express continued to benefit from the shift in customer behaviour towards the convenience channel and avoiding larger, busier stores. “The food-to-go and confectionery categories, which had been negatively impacted by Covid-19 restrictions, continued to recover throughout the half.” continued to recover throughout the half.” COLES PLUS OFFERS MEMBERS ‘EXCITING’ BENEFITS Coles has introduced a new subscription- based service that the company says rewards members while saving them time and money on their weekly shop. According to the retailer, the Coles Plus service is unlike anything else now available in Australia. It offers “exciting” benefits to members, including those related to grocery, liquor, click and collect, and home delivery. The service also has the same flat price regardless of the day or time customers choose to shop, Coles adds. The company says that for “just” $19 a month, members will receive benefits including unlimited access to Coles’ new Click&Collect Rapid, a service that allows customers to order and pick up their groceries within less than 90 minutes. Coles Plus members also have access to a priority Customer Care line, double Flybuys points on eligible Coles Online purchases, free delivery for all Coles Online orders over $100, and one free delivery per month for Liquorland online orders over $50. Coles Chief Executive E-commerce Ben Hassing says Coles Online is building from 20 years’ experience to deliver a seamless omnichannel customer experience and elevate the shopping experience for Coles Plus members. “We know customers love the convenience of Coles Online, but they want more,” he said. “Coles Plus is the latest way we’re rewarding the loyalty of our digitally engaged customers, ensuring Coles leads anytime-anywhere-anyhow shopping. “We continue to see significant growth in demand for online grocery shopping, and we’re investing in customer experience and capacity, which is having a positive impact on customer satisfaction. “Feedback from Australian families already using Coles Plus has been overwhelmingly encouraging, and we’re planning on adding more exciting updates in the future.” 8 RETAIL WORLD MAR, 2021