Leading Australian supermarket chain Coles has recorded A$7.3bn in food and liquor sales in the first quarter of the 2015 financial year, up 5.8 per cent compare to the same period last year.
The increase in sales for the Wesfarmer subsidiary was aligned with a 15 per cent increase in fresh fruit prices between July and September, with Coles’ food sales alone increasing 5 per cent, according to Retail World.
Wesfarmers managing director Richard Goyter cited tough growing conditions and cool weather pushing up prices in the past six months, but said an expected surplus in fruit in coming months would push prices down as supplies increase.
“We probably invested more in grocery in the last quarter than we have for awhile,” Goyder told Fairfax, adding that savings from job cuts and changes to its logistics and supply chain were strategically re-invested. “We are really conscious of building price trust with our customers…it is a virtuous circle and it’s something we’re really committed to doing.”
While one smaller supermarket was closed during the quarter, Coles opened four larger stores and refurbished 22 stores, bringing its total Australia-wide operations to 765 stores.
