Coles’ convenience sales revenue was $284 million for the first quarter, according to the retailer’s latest results.
This was an increase of 8.4% on the prior corresponding period, with comparable sales increasing by 9% as the business cycled lower fuel volumes and convenience store sales in the prior corresponding period due to Covid-19 lockdowns.
Gross retail sales of $301 million increased by 7.9%.
According to Coles, sales growth was driven by an increase in the food-to-go category, particularly hot fast food and coffee. Sales were also supported by Coles Express participation in the Magical Builders collectible program.
During the quarter, Coles announced the sale of the fuel and convenience business to Viva Energy. The retailer says the transaction allows the business to focus on growing its omnichannel supermarket and liquor businesses. Coles will receive $300 million and assign leases, which represented a liability of $816 million on Coles’ balance sheet as at 26 June 2022, to Viva Energy at completion, which is expected to occur in the second half of FY23 subject to Australian Competition and Consumer Commission and Foreign Investment Review Board approval.
The successful national roll out of the digital fuel docket was also completed during the quarter allowing customers the ease of redeeming their fuel docket through the Flybuys app.
Fuel volumes increased by 19.8% during the quarter with comparable fuel volumes increasing by 21.5%. This was driven by fuel prices lowering in the quarter from record highs experienced in the fourth quarter of FY22. Average weekly volumes of 58ml per week were recorded. The temporary fuel excise cut has ended and the full excise rate, now at 46¢ per litre, was restored on 29 September.
During the quarter, one site was closed, taking the total network to 710 sites.
