Australian retailer Coles (ASX: COL) has posted a 2.9% increase in sales revenue to A$10.5 billion in the 13 weeks to 29 September 2024, the first quarter of the 2024/25 financial year.
Coles said while supermarkets revenue grew 3.5% to $9.5 billion, liquor revenue was flat at $851 million and other revenue was down 11.2% at $190 million.
Excluding tobacco, sales revenue increased by 4.9%, while comparable sales growth was 2.4%.
Coles Group CEO Leah Weckert said cost of living remained a challenge for many customers, and Coles was focused on helping them find value through weekly specials, value campaigns, Flybuys and exclusive brands.
“Pleasingly for customers, meat, dairy, health & beauty and homecare categories were all in deflation during the quarter. Overall supermarkets inflation, excluding tobacco, declined to 1%, remaining well below historic levels,” Weckert said in a statement.
Coles said sales growth in the first quarter was supported by its Winter and Spring value campaigns, promotional activity, the Winter of Sports giveaway campaign and strong eCommerce growth.
“This was partially offset by availability challenges in eggs due to the impacts of Avian influenza,” the company said.
Weckert said: “In preparation for the upcoming festive season we have launched many new products to make entertaining at home more delicious, easy and affordable. In-store execution, availability and quality continue to be priorities to improve customer experience.
“A key focus of the quarter has been the ramp up of our new Automated Distribution Centre in New South Wales, which is progressing well, and the transition of next day home delivery orders from stores to our new customer fulfilment centres in both Melbourne and Sydney.
“Early results from the customer fulfilment centres show a significant step up in availability and perfect order rates.”
The figures were released before the start of trading on the Australian Securities Exchange (ASX).
The Coles share price ended at $17.70 on 30 October, down 43 cents from the previous close, capitalising the company at $23.7 billion.