Coles has recorded a 9 per cent increase in c-store sales in Q1, driven by growth in the food-to-go category, particularly hot fast-food and coffee.
In Coles Group’s Q1 results, it was reported that Coles Express sales revenue of $284 million increased by 8.4 per cent on the prior corresponding period, with the Magic Builders collectable program at Coles Express supporting that growth. Underlying c-store sales (excluding tobacco) increased by 17.6 per cent.
Steven Cain, CEO of Coles Group, said that despite record levels of hospitality expenditure in Australia, they are pleased that a strengthening sales trajectory is being driven by improved availability, new value campaigns, and the unwind of local shopping as consumer shopping behaviour normalises.
“Our commitment to providing trusted value, including Australia’s widest range of own brand products and the successful introduction of ‘DROPPED & LOCKED’ prices, is more relevant than ever with rising inflation placing pressure on many Australian households.”
During the quarter, Coles announced the sale of its fuel and convenience business to Viva Energy, allowing Coles to focus on its omnichannel supermarket and liquor business.
Over the quarter, fuel volumes increased by 19.8 per cent with comparable fuel volumes increasing by 12.5 per cent, which was driven by fuel prices lowering in the quarter from the record highs experienced in the fourth quarter of FY2022.
Group sales revenue was recorded at $9.9 billion and gross retail sales at $10.2 billion, an increase of 1.3 per cent and 1.9 per cent respectively.
Cain said their thoughts are with those Australians doing it tough due to the flooding in Victoria and on the East Coast.
“Coles is providing support to a number of flood-affected communities in northern Victoria including two semi-trailers with 40 pallets of essential groceries such as milk, pasta, rice, juice, coffee, tea, nappies and cleaning products donated and delivered to the Shepparton Showgrounds relief centre and additional supplies for the Njernda Aboriginal Corporation in Echuca.”
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