Coles Quarterly Sales Falter

Date : 29/04/2019 @ 09:22
Source : Dow Jones News
Stock : Woolworths Group Limited (WOW)
Quote : 39.065  0.285 (0.73%) @ 13:32
Woolworths share price Chart

Coles Quarterly Sales Falter

Coles (ASX:COL)
Historical Stock Chart

1 Year : From Nov 2018 to Nov 2019

Click Here for more Coles Charts.
   By Robb M. Stewart 
 

MELBOURNE, Australia--Coles Ltd. (COL.AU) logged a dip in quarterly sales, dented by the shift to a new business arrangement with its retail-fuel supplier that offset steady growth in its core supermarkets and liquor businesses.

Sales totaled 8.88 billion Australian dollars (US$6.25 billion) in the 12 weeks through March 24, down 1.8% on sales of A$9.05 billion a year earlier. That was despite a 3.2% rise in supermarkets sales to A$7.27 billion and 4.3% growth in liquor sales to A$735 million.

Sales from Coles's "Express" division slumped 32% year-over-year to A$874 million.

Effective in March, Coles moved to a commission-agent model and fuel supplier Viva Energy Group (VEA.AU) took responsibility for setting the retail price of gasoline sold through the Coles chain. The retailer will no longer record fuel sales revenue in its quarterly updates.

Fuel volumes dropped 11% in the fiscal third quarter.

Coles, Australia's second-largest supermarket chain by market share behind Woolworths Ltd. (WOW.AU), was spun off late last year by conglomerate Wesfarmers Ltd. (WES.AU), becoming an independent company as competition in the supermarket industry continues to heat up with a push by the likes of German discount chain Aldi.

Late last month, Coles entered a technology partnership with the U.K.'s Ocado Group PLC (OCDO.LN) to develop the Australian retailer's online grocery business. The push is forecast by Coles to roughly double its current Australia-wide home-delivery capacity and boost its online profit margin.

On a comparable basis, Coles said its supermarkets sales were up 2.4% on-year, helped by a promotional campaign and the timing of New Year's Eve, a typically strong trading day that fell in the third quarter this fiscal year.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

April 28, 2019 19:07 ET (23:07 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Your Recent History
FX
EURAUD
Euro vs Au..
FX
USDAUD
US Dollar ..
ASX
WPL
Woodside
NASDAQ
AAPL
Apple
ASX
BHP
BHP Bilito..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:au D:20191115 02:52:32