Big Hit Little Shop Campaign Fuels Coles’ Sales In September Quarter

  • Oct 15, 2018 AEDT
  • Team Kalkine
Big Hit Little Shop Campaign Fuels Coles’ Sales In September Quarter

The supermarket giant Coles flags comparable sales growth of 5.1% for the first quarter of fiscal 2019, as it succeeded in capturing the Australian’s attention to its campaign of swapping and sharing miniature, ‘Little Shop.’

The total sales for the three months ended 30 September 2018 has gone by 5% to $9,838 million at the back of strong growth in basket size, jump in number of transactions and units sold, and upswing over fresh market share.

Where Coles’ supermarkets sales hit $7,657 million, 5.8% increase compared to previous corresponding year’s $7,239 million, the sales of Liquor division jumped 2.1% to $744 million in Q1 FY19. Wesfarmers told that improvement in Coles’ supermarkets revenue is driven by promotional campaigns like ‘Little Shop’, ‘flybuys’ and enhancement over in-store execution. Launched in July this year, the flybuys campaign promoted ban of one-time plastic bags usage by rewarding flybuys points to customers if they bring their own bags.   

Coles Managing Director Steven Cain stated that since the start of FY19, the Coles team aimed to transform customers’ life easier.

But on the challenging side, the Coles supermarket business has witnessed cost pressure in its key fresh categories underpinned price inflation of 0.6% for the quarter. Further, its prices in bakery items and meat category has been adversely affected during the reporting period due to surge in grain cost and lower supply of livestock as a result of the drought.

However, the comparable sales for liquor division has gone up by 1.3% ahead of advancing the liquor network with 21 store renewals in September quarter. With the opening of five stores and closing of five stores during Q1 FY19, total retail liquor sites of Coles accounted to 900 while hotels 87 as at 30 September 2018.

Coles also succeeded in expanding its footprint in digital space as its online sales grew 30% in September 2018, which positions it to be on track to achieve the target $1,000 million sales for the current financial year.  The management informed that over 1,000 Click & Collect locations were rolled out across the network in past three-month period.

Whereas on the convenience store front, Coles Express reported $1,437 million sales for Q1 FY19, up 2.5% on the prior corresponding period. This reflects an improvement to the overall food to-go offering and Coles’ convenience range. But to the contrary, fuel volumes have reduced during the quarter impacted by higher oil prices and change in commercial terms with Alliance partners.

These results may be the last results under the roof of parent Wesfarmers as Coles underway to separate from Wesfarmers and become the independently listed company on ASX. On Coles’ demerger, Wesfarmers’ shareholders will reportedly receive 1 Coles share for every Wesfarmers share held and it is expected to be completed by November 2018, subject to shareholder and other approvals.

According to the top management of Wesfarmers, the revamping of the entire portfolio would help in achieving robust growth for Coles and Wesfarmers.

It seems after observing such an improvement in Coles’ performance, investors are not in favor to Coles’ separation from Wesfarmers as WES share price plunged 0.317% to close at $47.180 on 15 October 2018. However, over the past one year, the stock has witnessed a performance change of +12.69%.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.




All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK