Australian retailer Coles has cited its “unwavering commitment” to lowering prices as it again reported faster sales growth than rival Woolworths Ltd in the last quarter.
Coles booked a 6.6% rise in sales from its core food and liquor business to A$6.5bn (US$6.7bn) in the three months to 24 March. Comparable-store sales were up 5.3%.
Last week, Woolworths’ said sales from its core Australian food and liquor division were up 5.6%. Sales grew 4.9% when adjusted for the impact of Easter. Comparable-store sales increased 3.8%, or by 3.1% excluding the impact of Easter.
Coles MD Ian McLeod said the retailer had seen a “strong” increase in sales as it extended its Down Down promotional campaign.
“Our customers have benefited from our focus on quality fresh food and a better shopping experience, as well as our unwavering commitment to lowering prices despite external cost pressures,” McLeod said.
“The reinvigoration and extension of our Down Down campaign during the quarter began in January with the lowering of prices on hundreds of grocery lines that our customers buy most. The vast majority of these lower prices have been funded by Coles, and this investment has been welcomed by our customers and has resulted in good grocery volume growth. Customers also responded positively in the period to our re-launched flybuys program and the targeted offers we are providing, which complement our broader, existing offers.”
Click here for the full release from Coles owner Wesfarmers.