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Coles Reports Q3 Sales Growth Despite Growing Scrutiny

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By Published On: April 30, 20240 Comments

Coles have reported a profitable third quarter despite the Senate's Supermarket Inquiry forcing the grocer under major scrutiny.

Coles have reported a supermarket sales revenue of $9.1 billion for the third quarter, an increase of 5.1 percent YoY,  with comparable sales growth of 4.2 percent. 

Ecommerce sales increased by 34.9 percent to $856 million with penetration growing to 9.3 percent in the third quarter. According to the supermarket, Coles’ digital platforms are also increasingly influencing in store purchases with more than 20 percent of store sales capable of being linked to customer research through the Coles App or website, as more customers research online before buying in store. 

On top of that, Coles App monthly active users grew by 44 percent, and its Flybuys loyalty program experienced 6.8 percnet growth in active members with triple-digit growth in customer points redemptions.

In April, Coles Group launched Swaggle, a new online pet retailer providing pet parents with a specialty range of products, pet insurance and free vet advice.

“We have delivered another solid sales result across our supermarkets this quarter reflecting strong execution of our trade plans and our continued focus on delivering great value and great quality alongside improved availability,” said Coles Group CEO, Leah Weckert. “We have also seen a meaningful increase in customers interacting with our digital platforms and loyalty programs which is allowing us to engage on a more personalised basis with these customers. I’m also pleased to report that we are delivering on our commitment to address loss with a positive trajectory throughout the quarter.” 

According to Coles, total supermarket price inflation reduced from 3 percent in the second quarter to 2.2 percent in the third quarter as a result of moderating inflation in packaged coupled with deflation within the fresh category.

This news comes as the Government’s Supermarket Inquiry heats up. The year-long inquiry aims to examine competition in the supermarket sector and how it has changed since the ACCC’s last inquiry nearly 15 years ago back in 2008. The Food and Grocery Code of Conduct Review Interim Report was released last month, with the report including recommendations that the Code be made mandatory, with penalties of $10 million or more for serious breaches. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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