Coles Beats Woolworths In Sales Through Its Little Shop Promotion

  • Sep 27, 2018 AEST
  • Team Kalkine
Coles Beats Woolworths In Sales Through Its Little Shop Promotion
Wesfarmers Limited’s (ASX: WES), Coles’ Little shop promotion has successfully captured the attention of the Australian shoppers who are enjoying the swapping and sharing of their miniatures to create collectable communities across the country. Due to the extraordinary success of Little shop promotion and distribution of free reusable plastic bags, the company’s profit increased by 6 percent in the September quarter and the sales increased by 7 percent. In the September quarter the Coles Group sales grew faster than its competitor Woolworths for the first time in last two years. Coles' same-store supermarket sales increased by 7 per cent during the Little Shop campaign and free bag period, which lifted same-store sales over the three months ending September by 5% compared with 1.9 per cent in the previous quarter. Coles reduced the discounts on their various products like sauces, spreads, cheese, bottled water, biscuits, skin care products from approximately 31.3% to 27.7%. Due to the stronger sales and lower discounting, the EBIT of the company during the quarter increased by 6% ($11 million) which added $1 million to full year EBIT growth. Woolworth’s same-store sales growth slowed down in September quarter as compared to the sales growth of June quarter, but it is estimated that the shoppers who switched to Coles products due to Coles promotion strategy will switchback and the Coles sales will slowdown and Woolworths sales will gain the momentum going forward. Coles has witnessed an excellent start in FY2019 however continued investment is required to continue the momentum over next quarters.   Coles recently announced that the retirement of its Managing Director Mr. John Durkan and appointed Mr. Steve Cain as the new MD. The stronger sales and earnings by the Coles will help the parent company Wesfarmers Limited to seek shareholders approval for the $20 billion demerger of Coles in November 2018. It is estimated that this demerger will create a new top 30 company listed on ASX, with leading positions in supermarkets, liquor and convenience. Founded in the year 1914, Coles Group Limited is an Australian company which owns and operates retail stores in Australia. Mr. Steve Cain is the current Managing director of the company. The headquarter of the company is located in Level 5, Module 1 800 Toorak Road Hawthorn East Tooronga, Australia. On 23 November 2007, the company was acquired by Wesfarmers.

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