Wesfarmers Q1 sales up as food retail affiliates thrive
Conglomerate Wesfarmers has reported first-quarter sales up 4.3 percent as its subsidiary Coles food and liquor contributed to what the company described as "a generally pleasing result."
In a disclosure to the ASX, Wesfarmers retails outlets reported total sales in the first quarter of 2010-11 to be worth $11.221 billion, a 4.27 percent increase compared to the $10.761 billion in the first quarter of the previous year.
Coles food and liquor sales grew by 5.9 percent and convenience store sales were up by 1.2 percent.
Home improvement sales, including Wesfarmers Bunnings stores, rose by 3.9 percent in the period and by 9.1 percent in office supplies, including the company's Officeworks stores.
Wesfarmers managing director Richard Goyder said he was ''generally pleased with the results.''
This was achieved in ''a mixed trading environment for the Group's retail businesses affected by wet and cool weather conditions across most of the east coast of Australia and price deflation,'' Mr Goyder said in a statement.
''Transaction growth within each of these businesses was a highlight and reflects the continuing hard work of the teams in these businesses to execute their strategic plans and enhance the customer offer,'' he noted.
He said Wesfarmers' ''turnaround businesses'' -- Coles, Kmart and Officeworks -- experienced ''strong sales growth''.
Kmart saw sales rise by 3.7 percent, but Target, Wesfarmers second discount chain, saw sales fall by 1.4 percent on the prior corresponding quarter.