Coles’ convenience sales revenue was $271 million for the third quarter, according to the retailer’s latest results.
This was an increase of 0.7%, while comparable sales grew by 0.9% on the prior corresponding period.
Excluding tobacco, sales increased by 10.6% with the food-to-go category continuing to be the key driver of growth with ongoing momentum in sandwiches, wraps and coffee.
Fuel volumes improved throughout the quarter with average weekly volumes of 58.3ml per week, up 4.3% on the prior corresponding period.
One site was opened and one site closed, with the total network at 706 sites.
All closing conditions for the sale of the Coles Express fuel and convenience business to Viva Energy have now been received, including ACCC and FIRB clearances. The transaction is expected to complete by the end of next month.
As outlined when the transaction was announced in September 2022, following completion:
- Coles customers will continue to be able to access the four cent per litre fuel docket across the network
- Viva Energy will remain a partner of the Flybuys Program, with customers able to continue earning and redeeming points across the network
Coles says it will also continue to partner with Viva Energy in relation to product supply arrangements, enabling customers to benefit from continued access to the Coles Own Brand product range.
Departing message
Commenting on the results, Coles CEO Steven Cain, who hands the reins over to Leah Weckert on Monday (1 May), says: “At a time when cost of living pressures are mounting for many customers, the unique combination of Australia’s largest own brand range, hundreds of dropped and locked prices, thousands of weekly specials, free Masterchef cookware and Flybuys points has successfully driven sales and volume.
“Pleasingly, we saw some modest improvement in supply chain availability, however there is still more to do.
“Customers rate Coles as one of Australia’s most trusted brands, and our millions of direct and indirect shareholders have benefited from upper quartile returns.
“For our team and community, Coles is a more diverse and inclusive organisation, with sustainability credentials that have been recognised globally.
“The technology capability of Coles and our partners will continue to accelerate, with our first automated DC, the biggest single capital investment in Coles’ history, a real milestone.
“I would like to thank everyone at Coles Group, including Coles Express, and our various partners, for their support and wish them continued success. I know that the best is yet to come.”
