Coles has released its Q1 results, with online sales and click and collect services proving beneficial for the supermarket chain.
In Q1, Coles reportedly achieved a total sales figure of $7,657 million – a 5.8 percent increase from the same period in 2017.
“Coles Supermarkets’ headline sales increased 5.8 percent during the quarter, and its total sales increased by five percent,” said Wesfarmers’ Managing Director, Rob Scott.
Scott believes bigger basket sizes and a boost in the number of transactions made is to thank for the successful Q1 figures.
“Strong growth in basket size, transaction numbers and units sold, as well as improvements in fresh market share supported the sales result. Coles’ liquor and convenience segments also recorded headline sales growth for the quarter,” he said.
Coles online also saw a boost in revenue, with the quarterly progress report revealing a 30 percent increase in sales. According to the results statement, this growth puts the business on track to surpass its target of $1 billion in online sales during FY19. The grocery retailer also highlighted the steps taken over the last three months to provide customers with a convenient way to shop both in-store and online. Over the quarter, Coles reportedly rolled out more than 1,000 new click and collect locations in a bid to increase online sales, without discouraging shoppers from also visiting their local store.
The company’s recent Little Shop promotion also received a special mention in the report, with claims that “sales in the quarter were driven by the highly successful ‘Coles Little Shop’ campaign”.
This statement is hardly surprising given early reports of the campaign’s level of influence suggested the online store alone saw an extra 250,000 consumers hunting for a bargain during the promotion.
Over the eight-week campaign, the supermarket giant reportedly saw a 16 percent increase in the number of unique visitors on its website, compared to the previous eight-week period. Data from Hitwise also indicates that Coles saw a 19 percent increase in total site visits over this period.
Analysts believe this boost in online traffic, when paired with extra in-store sales, gave Coles an extra $200 million in sales for the quarter.
Coles is confident it will continue to replicate these results in the remainder of FY19, with the company’s Managing Director, Steven Cain, saying continued customer service will be key.
“Our 116,000 team members continue to passionately engage and build trust with our customers, positioning us well for long-term growth,” he said.
Achieving this over the 2019 financial year is extremely important for Coles, after the company dropped behind its biggest rival, Woolworths in FY18. In its 2018 results that were released back in August, Woolworths revealed a 3.4 percent increase in revenue for the year, while Coles trailed behind with only a 1.1 percent boost in revenue.
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