Coles has made a big comeback - and it's thanks to those 'Little Shop' toys

Quinn Rooney/Getty Images
  • The Little Shop campaign has paid off for Coles.
  • Wesfarmers reported today the supermarket group first quarter comparable food sales up 5.1%.
  • The 809 supermarkets recorded sales for the three months of $7.66 billion.

Headline sales at Coles supermarkets’ rose 5.8% in the September quarter, helped by the Little Shop promotional campaign, says parent company Wesfarmers.

The 809 supermarkets recorded sales for the three months of $7.66 billion, up 5.8% on the same quarter last year.

Comparable food sales increased 5.1% driven by significant growth in average customer basket size, units sold and transaction growth.

The numbers are way ahead of its full year sales growth of just 1.1% on a comparable basis and is now challenging its main competitor, Woolworths.

Woolworths in August reported full year comparable sales growth of 4.3%.

Wesfarmers Managing Director Rob Scott says the result reflects continued good momentum in Coles, driven by a successful Little Shop campaign, improved in-store execution and investments in flybuys promotions.

The Little Shop campaign gave out free grocery miniatures collectibles for every $30 spent. They were a hit with children.

“The result for the first quarter was pleasing as it demonstrated the ability of the Coles team to continue to focus on improving in-store execution while preparations continued for the proposed shareholder vote on the demerger of Coles,” says Scott.

Coles Managing Director Steven Cain says the supermarket continues to focus on improving the quality and range of fresh products within the business.

Coles Online grew sales by 30% and is on track to surpass $1 billion of sales for the current financial year.

All the numbers:

Wesfarmers

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