Coles first result after the spin-off from Westfarmers has certainly been mediocre. Sales growth was only 1.3% for the current quarter compared to 5.1% growth in the previous quarter. Coles seems to also be affected by the malaise that has impacted most retailers in the pre and post Xmas period.
With their Little Shop promotion now starting to wane, Coles is looking at other ways to grow sales. Along with Woolies, they are pushing investment in smaller “local” convenience stores to attract new customers as well as reduce the cost of rent in a very competitive retail environment, which is about to get worse with the arrival of Kaufland. Things are certainly hotting up in the world of supermarkets.
Roger is interviewed by Clinton Maynard of 2GB on his thoughts on the future of Coles following their recent results.