Coles Liquor has announced its sales revenue for FY21 was $3.5 billion, an increase of 6.6% on the prior corresponding period, with comparable sales growth growing by 6.3%, and 13.6% on a two-year basis.
Overall, Coles Group reported a full-year profit of $1.01 billion, up more than 7% despite COVID-19 lockdowns impacting shopping centres around the country. The supermarket giant reported a 3.1% lift in sales revenue to $38.6 billion and a lift in online sales to $2.1 billion.
However, liquor sales revenue decreased by 6.5% in the fourth quarter and comparable sales growth decreased by 7.1% as the business cycled elevated sales from COVID-19 and government imposed restrictions on licensed venue operators in the prior corresponding period when Liquor comparable sales growth was 20.2%.
On a two-year basis, Liquor headline sales growth increased to 12.5% in the fourth quarter compared to 8.9% achieved in the third quarter, while two-year comparable sales growth in the fourth quarter increased to 13.1% compared to 9.3% achieved in the third quarter.
Sales growth was driven by all banners, categories and states, underpinned by a strong performance in eCommerce while spirits and RTDs were the key drivers of growth at the category level.
Coles said targeted investments in capacity, order fulfilment, range and customer experience during the year supported
strong eCommerce sales growth of 79%. For the fourth quarter, eCommerce sales remained elevated growing by
42% with penetration of 4%.
Three dark stores in Victoria, Queensland and Western Australia were opened during the year. The integration of liquor into Coles Online, alongside our existing websites, has been a strategic focus with the number of liquor products available through the platform doubling over the past year.
Coles said its Black & White Liquorland format continues to perform well, moving from test to trial during the year.
The First Choice Liquor Market format has now been rolled out to 79% of the network. Coles said the new Vintage Cellars trial format “continues to show promising results”, with seven renewals completed during the year and successful low-cost elements rolled out across a further 12 stores.
Regarding the outlook for FY22 in Liquor, Coles revealed that sales in the first seven weeks of the first quarter have remained strong as lockdowns continue, with headline growth being flat and approximately 19% on a two-year headline basis.
Steven Cain, CEO of Coles Group, said: “In another year of COVID-19, floods and bushfires, I would like to thank our
team members, suppliers and community partners for their resilience and support to ensure the security of food
supply and a safe environment for our customers. Whilst the COVID-19 Delta variant is presenting some new
challenges, I would like to thank all levels of government for continuing to work with us to help keep our customers,
team members and the community safe, including by providing priority access to vaccines in some critical areas.
In February, we said the short-term outlook would be dependent upon the efficacy and pace of the vaccination
program. Six months on, government forecasts are pointing to a more normal outlook from early in calendar 2022
including the longer-term prospect of increased migration.”