The transformation of Coles Liquor has just completed its third year, with the company saying that liquor has achieved positive sales growth for the second consecutive year.
The announcement came as part of the Wesfarmer’s group’s results for the 2017 financial year, which highlighted a 13.5 per cent decrease in Coles’ earnings to $1609m for the full year. Food and liquor recorded sales growth of 2.0 per cent, with comparable sales growth of 1.0 per cent building on the strong growth achieved in the prior year.
“In a very competitive environment, Coles invested in value, service, and better quality and availability in Fresh, to deliver continued growth in sales,” Wesfarmers CEO Richard Goyder said. “Coles continued to execute its customer-led strategy, which it expects will provide a platform for sustainable growth in earnings and return on capital over the long term.
“The Coles Liquor transformation was progressed through investments in price, range and the quality of the store network, with the business achieving its second consecutive year of positive sales growth. The Convenience business reported lower revenue due to lower fuel volumes while store sales continued to grow.”
In the results Coles said that liquor achieved positive sales growth for the second consecutive year, adding: “Liquorland performance has led the improvement in sales trends, with considerable work completed to improve price competitiveness, range and the quality of the store network, including more than 380 renewals completed through the transformation.”
The company also said that its Liquor Market trial has now been expanded to four stores across two states and that the performance of this store trial will continue to be monitored.
The company added: “With the third year of the transformation complete in Liquor, there remains further opportunity for improvements across all brands. The business will progress the transformation through a focus on simplifying ranges, supply chain and store operations, in addition to building on positive sales momentum through an improved customer offer.”
In addition to the Liquor Market stores Coles now operates 702 Liquorland stores, net 15 up on last year, 99 1st Choice stores, net two up on last year, and 82 Vintage Cellars stores, net one up on last year.