Coles Group has reported liquor sales revenue of $2 billion for the first half of FY24, an increased by 1.8%, with sales revenue growth in the second quarter of 1.9%.
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“During the half, customers were increasingly seeking value and managing their overall spend,” Coles said.
“Transactions continued to grow with modest growth in spend per basket whilst average units per basket were down.”
Coles said cost-of-living pressures would continue to impact sales growth in the second half. It reported that the first eight weeks of the third quarter saw liquor sales revenue decline by 2.2% due to customers’ reduced discretionary spending.
Coles Group CEO Leah Weckert said: “We understand the cost of living pressures that many of our customers face, such as higher rent, mortgage, energy, and other household bills.
“That’s why we are working hard to deliver value to our customers every day. Over the last six months, we lowered the prices of hundreds of products through our “Great Value, Hands Down” campaign and we delivered additional value through a wide range of Exclusive to Coles products, weekly specials, and our Flybuys loyalty program.”
Coles said supply side inflation also remained elevated, driven by supplier cost price increases together with the August excise in beer, spirits and RTDs.
eCommerce revenue grew by 14.9% with penetration at 6.4% (7.6% including Coles Online). Growth was underpinned by
the continued strength in the on-demand channel. eCommerce revenue growth in the second quarter moderated to
4.3% as the business reviewed its promotional mix across channels.
Own brands surge on shelf
“Delivering quality and value to customers through our Exclusive Liquor Brand (ELB) portfolio continued to be a key focus,” Coles said.
“199 ELB lines were added to the portfolio and more than 300 ELB awards were received.”
Exclusive labels are the brands that are owned by other suppliers but available exclusively to Coles Liquor customers. Examples include Loch Lomond, Canard Duchene, Barry and Tradie.
Product innovation was also strong driver of growth, particularly in the RTD category with several first-to-market products introduced such as “Major Major” and the “Barry” range of RTDs which were exclusive to Coles Liquor.
During the half, 71 store renewals were completed, 10 new stores were opened and three stores closed across the
Liquorland, Vintage Cellars and First Choice banners. At the end of the period the portfolio comprised 964 stores.
The innovation that’s put the wine category back in growth