Coles posted higher sales revenue in the fiscal first quarter, which the supermarket chain attributes to its winter and spring value campaigns, promotional activities, and strong e-commerce growth.
The group’s revenue increased 2.9 per cent to $10.55 billion despite availability challenges in eggs due to the impacts of Avian influenza.
Its supermarket segment’s sales rose 3.5 per cent to $9.51 billion, while liquor sales stood flat at $851 million. The company noted inflation in fresh produce and deflation in meat and dairy.
Coles said it experienced strong sales growth in both next-day and same-day delivery, as well as Click & Collect, with the opening of its Victorian and NSW customer fulfilment centres during the quarter.
Coles also said Flybuys active members climbed 4.1 per cent, with 21.3 per cent growth in members participating in personalised value offers.
The supermarket chain opened one new store during the quarter, taking the store count to 857.
Meanwhile, Coles said it is investing $880 million to develop a new automated distribution centre (ADC) in Truganina, Victoria.
The new project is in partnership with Witron Australia, which currently has 98 supply chain automation projects in 13 countries.
The new facility will have the capacity to process 4.6 million cartons per week, about 15 per cent higher than the facilities in NSW and Queensland.
Once operational, the new ADC will service all stores in Victoria and Tasmania and will also integrate into Coles’ existing supply chain in SA and WA.
