By Andy Young
Wesfarmers Limited, the owner of Coles supermarkets, has reported that its retail sales results for the third quarter of the 2016 financial year show improved sales in its liquor business.
The improvement continues on from the “encouraging signs” that Wesfarmers reported for Coles Liquor earlier this year.
Wesfarmers managing director Richard Goyder said the sales performance of the retail businesses in the quarter was “generally pleasing” adding that the performance reflected “further improvements in value, customer service and fresh quality”.
For Coles’ food and liquor business, sales for the third quarter were $7.5 billion, up 5.0 per cent on the previous corresponding period. Food and liquor sales for the financial year to date increased by 5.6 per cent to $24.2bn.
The increase comes in spite of a two per cent food and liquor price deflation in the quarter, which meant a 1.4 per cent food and liquor price deflation for the year to date.
Coles managing director John Durkan said the improved sales reflected the on-going work in turning around the group’s liquor business.
“The transformation of our liquor business continues to progress in line with expectations,” Durkan said. “Work done on price, range and in-store experience led to improved sales trends throughout the period.
“As we transition to the next phase of the turnaround, we see room for continued improvement in our customer offering.”