Super surge for grocer
Coles sales consolidate after virus boom
COLES booked an unprecedented 13.1 per cent growth in quarterly comparable sales across its supermarkets, but panic-buying consumers have already changed their habits as they stay indoors due to coronavirus restrictions.
Coles said total supermarket sales revenue for the third quarter rose to $8.23 billion – up 13.8 per cent on the same time last year – as shoppers stockpiled groceries in the face of looming restrictions.
For comparison, a successful 2019 Christmas shopping period yielded second-quarter comparative sales growth of 3.6 per cent across the Coles supermarket network.
Since the start of April, however, comparable sales growth has broadly trended back towards pre-COVID-19 levels.
Chief executive Steve Cain said shoppers were packing their baskets with more food but shopping less, meaning fewer convenience and impulse products.
There has also been a move towards more cooking and baking from scratch, supported by the success of TV cooking programs such as MasterChef.
“(People) are eating more fresh food,” chief executive Steve Cain said. “Veg sales are the highest penetration they have ever been.”
For the fourth quarter, Mr Cain said Easter trading was more subdued this year due to restrictions on traditional family and friends events and celebrations.
He also expects higher costs in quarter four as a result of the company’s extra COVID-19 investments.
This includes paying staff for longer hours as well as remunerating extra staff members who were brought on deck to help with increased traffic.
There will also be increased store cleaning costs and price pressures associated with the effects of the drought and bushfires.
The company’s liquor division – despite being hurt by bushfire smog and floods in January and February – managed comparable sales growth of 7.2 per cent for the third quarter as pubs, clubs and hotels were shut.
Sales at the company’s Liquorland, First Choice, Liquor Market and Vintage Cellars stores rose 6.1 per cent to $740 million.