Coles, Bunnings Save Wesfarmers
Australian retail-to-coal conglomerate Wesfarmers today posted $11.7 billion sales across its retail chains, a 5.8 percent increase in the fourth quarter from a year earlier.
Coles led the upturn with the supermarket chain posting food and liquor comparable store sales growth of 6.3 percent for the year, following a five percent growth last year.
Bunnings’ total sales also rose for the year, up 5.7 percent, building on 10.4 percent growth last year.
Kmart and Target, on the other hand, dragged down the figure. For the fourth quarter, Kmart total sales declined 0.8 percent to $907 million, while comparable store sales declined 0.1 percent as investment in everyday low prices offset significantly increased volumes, particularly in Apparel and Home categories.
Target experienced difficult trading conditions throughout the year, with total sales of $3.8 billion declining by 1.2 percent, as price deflation across the store constrained sales despite solid underlying transaction growth.
Managing Director, Richard Goyder, said that the retail division’s sales performance for the year was solid, especially given the backdrop of declining consumer confidence, significant price deflation and adverse weather conditions experienced during the period.
“As households have experienced higher costs of living and an increased propensity to save, all of the Group’s retail businesses have worked hard to provide genuinely better value and an improved customer offer.
Shares in Wesfarmers have fallen 2.36 percent in morning trade to $29.38.