Coles have listed keeping things simple and focusing productivity as few of the reasons for its successful first quarter financial results in the 2016 financial year.
Australian Food News reported that parent company Westfarmers reported strong results for most of its retail investments which include Officeworks, Warehouse and Kmart and Target. However, the group's results dropped when compared to last year's petrol sales to current figures because of lower petrol prices.
Coles Managing Director John Durkan also recognized that further work was required despite the fact that its liquor transformation was producing promising results. He added that centering on productivity and simplicity along with lowering prices, improving fresh offers and increasing customer service levels were all key to the growth.
"Customers responded positively to continued strong price investment, and this was evident in the growth in volumes, transactions and basket size recorded during the quarter," John said.
"Our absolute focus remains on delivering trusted value to Australian households through Every Day low prices, compelling promotions and innovation in Coles Brand," he continued. "Customers are unwavering in their feedback that they want great prices, not just on key lines but across the product range, combined with great customer service, and this is exactly what we're determined to deliver right across Australia."
Furthermore, Wesfarmers sustained with its liquor transformation with promising results and growth as a result. "The customer experience within Coles Liquor continued during the quarter, and reflected the work completed over the past 12 months," John said. "Whilst the early improvements are encouraging, more work needs to be done to improve the range, value proposition and store network," he added.
Meanwhile, petrol and convenience store investments, via "Coles Express," were one of the few areas where Wesfarmers did not perform well this quarter. As a matter of fact, sales were $AUD1.8 billion, a diminution of 7.8 per cent on the former corresponding period.
Wesfarmers credited the drop to low fuel prices with convenience sale purchases outside of petrol snowballing by 1.4 per cent, Australian Food News reported. Too, the long-drawn-out Coles Express store network was with four new stores taking total store numbers up to 666.
