Coles Sees Slip In Q1 Sales Growth
While the Westfarmers-owned supermarket chain reported a rise in headline sales to $7.9 billion over the last quarter, but a decline in sales growth relative to the 5.8% recorded back in August.
The quarterly earnings report listed like-for-like food and liquor sales growth at 1.8 per cent for the first quarter, falling short of analyst expectations.
These numbers come courtesy of slower overall growth for the sector and increased competition from rivals – which has brought record price deflation to the supermarket wars.
“In our food business, we have seen a change in market conditions over the past year,” says Coles Managing Director John Durkan.
“Market growth has slowed, while at the same time there has been an increase in competitive intensity. Despite these changes in market conditions, our focus on the customer will not waver.”
The company’s shares fell 5% following the release of the earnings report.
Rival Woolworths is due to report its own sales on Friday.