Coles has seen its supermarket revenue jump by 4.7 per cent in its first quarter results as households turn away from dining out amid the cost of living crisis.
The company said Australians were eating at home as a way to save money as interest rates climb and inflation refuses to drop quickly.
However, it also made special mention of a collectables campaign in announcing its nearly $10 billion in supermarket revenue – a jump of $412 million – for the last three months.
“Supermarkets sales revenue of $9.2 billion for the first quarter increased by 4.7 per cent as the business cycled the highly successful Magical Builders collectible campaign in the prior corresponding period,” it said in its results.
“Excluding tobacco sales, which continued to decline in line with industry trends, sales revenue increased by 5.9 per cent.
“Gross retail sales of $9.5 billion increased by 5.7 per cent and comparable sales grew by 4.6 per cent.”
The jump in revenue was partly attributed to the supermarket giant capitalising on the cost of living crisis.
“Customers have shared that they are increasingly eating and entertaining at home, seeking out loyalty points and bonus offers, and looking for more affordable alternatives as they seek more value in response to cost of living pressures,” Coles said.
It also said supply chains “continue to improve and inflation in key categories is moderating”.
While a jump from last year’s first quarter result, Coles’ improvement was less pronounced than Woolworths, which yesterday announced food retail sales reached $12.96 billion for July to September – a 6.1 per cent increase on the same time last year.
(9 News)
