Coles achieve H1 sales growth despite challenging retail environment
Coles-operator Wesfarmers Ltd announced on Monday that sales of the retail firm saw spiking numbers in the first six months of the current financial year despite cautious consumer behaviour seen for the most part of the period.
According to its latest sales report, Coles' overall sales during the first half of fiscal 2011 jumped by 5.9 percent to $16.31 billion while the retail giant's home improvement and office division sales shot up by 4.8 percent to $4.25 billion.
In his statement, Wesfarmers managing director Richard Goyder said that the encouraging numbers were achieved amidst an uncertain retail environment, higher interest rates and the unpredictable weather conditions that hit the east coast of Australia.
Goyder admitted that such factors hampered growth on the firm's business operations, specifically Target and Bunnings and "deflation was evident across all divisions, driven by a competitive retail landscape and strong Australian dollar."
Target managing director Launa Inman reported that sales of their overall sales suffered retreats of 3.1 percent to $2.2 billion during the first six months of financial year 2010/11 while comparable store sales dipped by 3.3 percent in the same period.
Inman said that the results detracted from numbers posted in the previous corresponding period when Target realised significant record figures.
She added that cooler weather conditions in the eastern regions discouraged better movements of Target's seasonal products, leaving a rather challenging trading condition for its stores.
Inman also clarified that customers and sales actually surged during the same period but the falling numbers "reflect the impact of price deflation across the market along with measures taken to clear seasonal stock."
The division announced too that a total of 21 Target stores were refurbished in the second quarter, leading to 39 stores that have been renovated for the entire six months of the first half.