Coles’ convenience sales revenue for the third quarter was $256 million, according to the retailer’s latest results.
This was an increase of 5% on the prior corresponding period with comparable c-store sales growth of 4.3%.
According to the retailer, the result benefited from COVID-19 related pantry stocking late in the quarter with strong demand in non-food categories such as toilet paper and cleaning products.
Sales were also supported by the Fresh Stikeez collectible campaign which included a ‘Secret Stikeez’ only available at Coles Express.
Range reviews in hot food-to-go, says Coles, also contributed to volume and sales growth.
However, this was offset by lower fuel volumes late in March with less road traffic due to social distancing measures requiring people to largely remain at home. While weekly fuel volumes peaked at approximately 70ml during the quarter, the business exited the quarter at approximately 50mL per week.
The COVID-19 sales uplift, says Coles, was also partially offset by the impact of significant weather events earlier in the quarter. This included bushfires and associated smoke haze, and floods in NSW and Queensland, both leading to less traffic into Express stores, as well as several site closures.
During the quarter, a network-wide roll-out of fast-lane fridges commenced. This, says the retailer, will allow Coles Express to provide a more “compelling” offer to customers in drinks and snacks in the highest foot traffic area of the store. The roll-out to the remainder of the network is expected to be completed in the fourth quarter.
Express opened one new site during the quarter and closed three. This brings the total network to 711 sites.
