- Supermarket giant Coles (COL) has recorded a sales decrease of 6.1 per cent for the March quarter as the negative impact of COVID-19 continues
- However, liquor and Coles Express sales increased 2.6 per cent and 7.4 per cent, respectively
- Total revenue for all three sectors totalled nearly $8.76 billion, down from $9.22 billion in the prior corresponding period
- Due to social distancing and store closures, eCommerce sales increased 5.5 per cent in Q3, up from a 5.3 per cent growth in Q2 FY21
- The supermarket is aiming to deliver zero greenhouse gas emissions by 2030 and have its entire business using 100 per cent renewable electricity by the end of FY25
- Furthermore, as of July 1, 2021, Coles will no longer sell single-use plastic tableware products
- In the first four weeks of the final quarter, sales have so far increased by roughly four per cent
- Pleasingly, Coles is seeing early signs of normalised consumer behaviour and expects this to continue for the remainder of the financial year
- Shares in Coles are up a slight 0.83 per cent and are trading at $15.75
Supermarket giant Coles (COL) has recorded a sales decrease of 6.1 per cent for the March quarter as the negative impact of COVID-19 continues.
Sales revenue was $7.7 billion for the quarter, down from $8.2 billion in Q3 2020.
However, liquor and Coles Express sales increased 2.6 per cent to $759 million and 7.4 per cent to $275 million, respectively.
Total revenue for all three sectors totalled nearly $8.76 billion, down from the $9.22 billion in the prior corresponding period.
Pleasingly, consumer behaviour has started to return to pre-COVID levels, primarily due to Easter sales and customers returning to CBD stores.
Easter confectionary was one of the strongest performing categories, shopping trips grew and Sunday returned to the busiest trading day.
Due to social distancing and store closures, eCommerce sales increased 5.5 per cent in Q3, up from a 5.3 per cent growth in Q2 FY21.
eCommerce business-to-consumer sales grew 57 per cent while business-to-business sales also experienced growth.
Win Together
In the quarter, Coles launched its ‘Together to Zero’ strategy to drive sustainability through zero emissions, zero waste and zero hunger.
The supermarket is aiming to deliver zero greenhouse gas emissions by 2030 and have its entire business using 100 per cent renewable electricity by the end of FY25.
Coles then signed an agreement with Lal Lal Wind Farms to purchase larger-scale generation certificates to increase its renewable energy consumption to 45 per cent by FY23.
Finally, as of July 1, 2021, the company will no longer sell single-use plastic tableware products.
“I am pleased to be reporting ongoing successful execution of our refreshed strategy, continued support of communities in need, including those impacted by the NSW floods, and the beginning of a return to normality for Australians’ everyday lives,” CEO Steven Cain commented.
Outlook
In the first four weeks of the final quarter, sales have so far increased by roughly four per cent.
Pleasingly, Coles is seeing early signs of normalised consumer behaviour and expects this to continue for the remainder of the financial year.
Shares in Coles are up a slight 0.83 per cent and are trading at $15.75 at 11:52 am AEST.