Coles retail sales growth in the fourth quarter has once more topped Woolworths. ?Total Coles’ food and liquor sales for the fourth quarter were $5.9 billion, up 4.2 per cent, with comparable food and liquor store sales growth of 4.2 per cent.

Total Coles’ food and liquor sales for the financial year were $23.6 billion, up 5.6 per cent on the prior corresponding period, with comparable food and liquor store sales growth of 5.0 per cent.

Coles Managing Director, Ian McLeod, said a positive customer response to Coles’ focus on quality, service and value had driven continued growth in food and liquor sales. Coles' sponsorship of Australian reality TV cooking show MasterChef had also boosted sales. Coles has signed a new two year deal to be the exclusive supermarket sponsor of the reality show.

“As we enter the second phase of our turnaround strategy, this is a pleasing sales result for Coles,” Mr McLeod said.

“It reflects another quarter of solid performance despite the negative impact on retail spending of higher interest rates and rising electricity, gas and water bills.”

Managing director of Wesfarmers Richard Goyder said the retail divisions’ sales performance for the year was solid overall, especially given the positive impact of the Australian Government stimulus payments on sales in the prior corresponding period.

“Good progress continues to be made on growth strategies across the Group’s retail businesses, with customers responding well to improvements in product range, value and service. Over the last 12 months, our retail businesses have established or reinforced sound business platforms and have strategies in place to further improve the customer experience. This leaves the Group well placed for the 2011 financial year,” Mr Goyder said.