- Coles has delivered impressive Q1 FY2021 results with 10.5% growth in its sales revenue.
- The supermarket chain made significant progress in digital and online sales.
- In the first four weeks of Q2 FY2021, supermarkets comparable sales growth and online sales grew by 4% and 45% respectively.
Australian supermarket chain Coles group (ASX:COL) has released its Q1 FY2021 sales result and reported a 10.5% growth in its sales revenue to A$9.6 billion. Supermarket sales growth stood at 9.7%, while sales growth via online mode was 57%. The comparable sales growth of liquor was 17.8%, with an 80% jump witnessed in online sales. Comparable sales growth of Express convenience (c-store) was 10.2%
Post the release of Q1 FY2020 results, the shares of COL moved up by 2.382% and were trading at A$17.620 (at AEST 3:42 PM). Coles group has a market capitalisation of A$22.95 billion and has ~1.334 billion outstanding shares.
Coles CEO, Mr Steven Cain commented:
A Glance at Strategic Highlights
- A digital transformation with Coles switching from delivery of a weekly printed catalogue to letterboxes to “coles&co”. The significant step helped the Company reduce the number of printed catalogues by 4.6 million each week.
- Online B2C sales grewby 73%. Steps were taken towards the enhancement of user experience while shopping online. It comprises the implementation of single-click checkout and additional website functionality.
- Coles introduced over 800 products on everyday low prices.
- Over 680 new Own Brand products were introduced; Own Brand sales were up 12.6%.
- The Company introduced the rollout of paperless transactions to digitise entry and exiting of distribution centres. The onboarding process for drivers was automated along with the implementation of a global trade management platform, GT Nexus to simplify the international trade operations and actions to cut loss in store continuing.
- Witron automated distribution centre built in Queensland advanced with automation technology.
- Coles finalised eight store renewals.
On this front, the Company supported those who were impacted because of COVID-19 pandemic.
- Coles signed a 10-year agreement with CleanCo (a state-owned clean energy generator and retailer) to source over 90% of Queensland electricity needs from renewable sources from July 2022.
- The Company focussed on the well-being of team members.
- During the Redkite Week, the Company supported communities with over A$500,000 raised in Coles Express sites. Further, over A$900,000 was raised by Coles shoppers for the Curing Homesickness A$2 donation card campaign in just two weeks.
In the first four weeks of Q2, Supermarkets comparable sales growth improved by 6.4%. Online sales improved by 45% with the ease in demand in Victoria. Liquor comparable sales growth during this period was 16.9%.
Coles highlighted various trends due to uncertainty surrounding COVID-19,which could impact the Group in the future. The trends include personal hygiene standards, increased levels of at-home activity and entertaining, 0nline consumption and digital recipes, restricted international travel plus the opening of interstate borders.