Woolworths Vs. Coles

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By Published On: August 20, 20180 Comments

Woolworths has today released its annual earnings posting about revenue growth in 2017-18. Things are looking up for Woolworths as they continue to outperform its rival Coles.

Woolworths have released their 2017-18 earnings today showing a 3.4 percent revenue growth for the year, in comparison with its rival Coles who reported a 1.1 percent revenue growth. Australia’s largest industry research company, IBISWorld, stated that this boost in revenue continues to add to Woolworths’ outperformance of Coles. Not only have Woolworths outpaced Coles in revenue growth, but also price in deflation at its supermarkets. A deflation figure of 1.9 percent was recorded, compared to Coles’ at 1.2 percent.

Woolworths has seen growth not only in its own business, but also other businesses that the company own. Endeavour Drinks Liquor also posted growth of 4.5 percent in 2017-18. Its New Zealand supermarkets and the company’s Hotels business also reported 3.4 percent and 3.7 percent comparable sales growth, cementing the success of the past year for the company.

The company surpassed expectations with IBISWorld Senior Industry Analyst, Andrew Ledovskikh commenting on the growth, “Overall, the company performed slightly better than expected, with NPAT totalling $1.7 billion in 2017-18, up from $1.5 billion the prior year.”

According to IBISWorld analysts, the Supermarkets and Grocery Stores industry’s revenue is expected to total $102.3 billion in 2017-18. Woolworths accounts for approximately 37 percent of this within the industry. Coles holds 30 percent, ALDI holds nine percent and smaller players such as IGC and Costco account for the remaining balance.

Overall, it is set to be another big year for the supermarket giant as they continue to make strides towards the future.

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