Wesfarmers Sales Up Despite Subdued Consumer Sentiment
Wesfarmers Ltd Thursday announced its retail sales growth rose 6.5 percent for the first quarter of the 2012 financial year.
Managing Director Richard Goyder said he was generally pleased with the results, particularly given that consumer sentiment had remained subdued throughout the quarter.
"Households continue to experience higher cost of living than a year ago and are showing a propensity to save," Goyder told analysts during a briefing.
A highlight of the result was the strong sales momentum in Coles and Bunnings, with both businesses continuing to build on the solid results achieved in 2011.
Coles’ food and liquor sales growth of 5.5 per cent reflects the continued positive customer response to ongoing improvements across the business, underpinned by its commitment to providing better value, quality and service. Coles Express performed well in the period with strong comparable fuel volume growth of 5.2 per cent.
Bunnings’ sales increased 8.5 per cent with sales growth achieved in both consumer and commercial areas. The result reflects ongoing improvements in the customer experience, category enhancements and strong growth in the store network.
Target continued to experience difficult trading conditions with sales negatively affected by ongoing deflation and a high level of promotional activity in the market.
Kmart and Officeworks’ sales were broadly flat as investment in lowering prices and deflation, particularly in Officeworks’ technology and furniture categories, was offset by another quarter of solid growth in volumes and customer transactions.