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30-10-2014, 08:40 PM
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Coles, Bunnings power Wesfarmers sales
AAP OCTOBER 30, 2014 12:20PM
A SOLID lift in sales at Coles supermarkets and hardware chain Bunnings have pushed Wesfarmers’ latest quarterly retail sales above $13.5 billion.
Coles increased food and liquor sales by 5.8 per cent to $7.3 billion in the September quarter, compared to the same period a year ago.
Comparable food and liquor store sales, which strip out the effects of store openings and closures, rose 4.3 per cent.
Bunnings Warehouse and Officeworks also continued to shine for the Wesfarmers conglomerate, while Kmart’s sales grew modestly but Target’s sales declined.
Target continues to be the poor performer in the group, with total sales falling 4.6 per cent to $753 million.
Bunnings sales rose 11 per cent to $2.2 billion, while Officeworks’ sales climbed eight per cent and Kmart rose 2.9 per cent.
Wesfarmers’ (WES) managing director Richard Goyder says the sales results were generally pleasing.
“During the quarter our retail portfolio continued to invest productivity improvements into lower pricing, enhance merchandise offers and customer service, as well as improve its store networks,” he said.
But IG Markets market strategist Evan Lucas said another poor result from Target does raise the question as to why Wesfarmers’ perseveres with the retail chain.
“Target doesn’t fit their current strategy and it’s not delivering the kind of returns they expect,” he said.
“However, they are a very well run company and 75 per cent of their business is food and liquor, which is why Wesfarmers is doing so well.”
Excluding liquor, Coles’ comparable food store sales increased five per cent.
Wesfarmers says tobacco excise increases and fresh food price rises due to tougher growing conditions partially offset gains from easing food and liquor price deflation.
However, the supermarket giant’s fuel and convenience store business, Coles Express, recorded a 2.3 per cent fall in total sales to $1.9 billion.
Wesfarmers says lower fuel prices during the quarter more than offset reduced fuel discounts after Coles and rival Woolworths agreed to the competition watchdog’s undertaking that they stop making fuel saving offers that were funded by other parts of their business.
Convenience store sales, excluding fuel sales, grew by 11.1 per cent, with like-for-like sales up 8.3 per cent.
Wesfarmers shares were 51 cents stronger at $43.86 at 1134 AEDT.
AAP
http://www.wesfarmers.com.au/investors/i...-home.html
Coles, Bunnings power Wesfarmers sales
AAP OCTOBER 30, 2014 12:20PM
A SOLID lift in sales at Coles supermarkets and hardware chain Bunnings have pushed Wesfarmers’ latest quarterly retail sales above $13.5 billion.
Coles increased food and liquor sales by 5.8 per cent to $7.3 billion in the September quarter, compared to the same period a year ago.
Comparable food and liquor store sales, which strip out the effects of store openings and closures, rose 4.3 per cent.
Bunnings Warehouse and Officeworks also continued to shine for the Wesfarmers conglomerate, while Kmart’s sales grew modestly but Target’s sales declined.
Target continues to be the poor performer in the group, with total sales falling 4.6 per cent to $753 million.
Bunnings sales rose 11 per cent to $2.2 billion, while Officeworks’ sales climbed eight per cent and Kmart rose 2.9 per cent.
Wesfarmers’ (WES) managing director Richard Goyder says the sales results were generally pleasing.
“During the quarter our retail portfolio continued to invest productivity improvements into lower pricing, enhance merchandise offers and customer service, as well as improve its store networks,” he said.
But IG Markets market strategist Evan Lucas said another poor result from Target does raise the question as to why Wesfarmers’ perseveres with the retail chain.
“Target doesn’t fit their current strategy and it’s not delivering the kind of returns they expect,” he said.
“However, they are a very well run company and 75 per cent of their business is food and liquor, which is why Wesfarmers is doing so well.”
Excluding liquor, Coles’ comparable food store sales increased five per cent.
Wesfarmers says tobacco excise increases and fresh food price rises due to tougher growing conditions partially offset gains from easing food and liquor price deflation.
However, the supermarket giant’s fuel and convenience store business, Coles Express, recorded a 2.3 per cent fall in total sales to $1.9 billion.
Wesfarmers says lower fuel prices during the quarter more than offset reduced fuel discounts after Coles and rival Woolworths agreed to the competition watchdog’s undertaking that they stop making fuel saving offers that were funded by other parts of their business.
Convenience store sales, excluding fuel sales, grew by 11.1 per cent, with like-for-like sales up 8.3 per cent.
Wesfarmers shares were 51 cents stronger at $43.86 at 1134 AEDT.
AAP