Star performer for Wesfarmers in Q3.
Managing director Richard Goyder (pictured below) said that the sales performance of the Group’s retail businesses during the quarter was pleasing, driven by strong growth in Coles, Bunnings, Officeworks, and particularly Kmart, which delivered a 17.9% increase in sales for the quarter.
“Our retail businesses remain focused on implementing strategies aimed at providing customers with stronger value, great service and compelling products through enhanced physical store networks and digital platforms,” Goyder said in a statement to the Australian Securities Exchange (ASX).
Kmart sales jump 17.9%
- Total sales for the quarter were $1.1 billion, an increase of 17.9% on the previous corresponding period, with comparable store sales increasing 15.2%.
- For the financial year to date, total sales increased 13.9% to $3.9 billion, while comparable store sales increased 10.8%.
- All categories achieved growth.
- Weather impacted winter category performance.
Kmart managing director Ian Bailey said Kmart delivered another strong quarter with all categories achieving growth on the prior year, which more than offset the margin impacts from a weaker Australian dollar.
“Despite strong business momentum, sales growth over the remainder of the financial year will be affected by winter category performance which has started more slowly than last year. Regardless of the environment, Kmart’s relentless focus on delivering everyday items at the lowest prices will continue,” Bailey said.
Target sales inch up by 2.3%
- Total sales for the quarter were $678 million, an increase of 2.3% on the previous corresponding period, with comparable store sales increasing 1.4%.
- For the financial year to date, total sales increased 1.7% to $2.7 billion, while comparable store sales increased 1.4%.
- Lower sales in womenswear, underwear and homewares.
- Strategic review of business is underway.
- Fourth quarter results will be affected.
Department stores division CEO, Guy Russo (pictured below) said, “Due to declining sales momentum, including poorer than expected sell-through of some summer lines, targeted clearance activity was undertaken late in the quarter, further affecting sales and margins. Higher clearance activity is also expected in the fourth quarter, with further risk in relation to winter categories.”
“Following the recent creation of the department stores division, a strategic review of the business by new management is presently underway. Ahead of this work being completed, Target’s results for the fourth quarter are expected to include the effects of a number of initiatives aimed at establishing a stronger platform for the longer term business turnaround,” Russo concluded.
Bunnings performs well with 11% sales increase
- Total sales for the quarter4 were $2.6 billion, up 11% on the previous corresponding period. Total store sales for the quarter increased 11.5%, while store-on-store growth was 8.3%.
- For the financial year to date, total sales increased 10.9% to $8.1 billion. Total store sales grew 11.1% in the year to date, while store-on-store growth was 8%.
Bunnings group CEO, John Gillam (pictured below) said that the Bunnings Australia and New Zealand business delivered pleasing sales growth, building on positive momentum and taking advantage of good trading conditions.
“We continue to make good progress across all our strategic initiatives, with increased brand reach in both physical and digital networks. Ongoing investments in service and value continue to generate favourable customer responses,” Gillam added.
As Officeworks sales increase by 5.6%
- Total sales for the quarter were $512 million, up 5.6% on the previous corresponding period.
- For the financial year to date, total sales increased 7.8% to $1.4 billion.
- The business recorded positive sales growth in stores and online.
- Positive results from back-to-school trading.
Officeworks managing director, Mark Ward (pictured below) said the result was pleasing and was underpinned by strong sales during the critical back-to-school trading period.
“The ongoing work within Officeworks to improve the customer offer continues to produce strong results. The business remains focused on driving its ‘every channel’ strategy, and providing customers with a compelling offer by delivering great customer service, providing best value and being a one-stop shop,” Ward said.
Coles sees 5.9% rise in sales
- Headline food and liquor sales for the quarter were $7.5 billion, up 5.9% on the previous corresponding period.
- Food and liquor sales for the financial year to date increased 5.6% to $24.2 billion.
- Comparable food and liquor store sales increased 4.9% and comparable food store sales increased 4.9% for the quarter.
Coles managing director John Durkan (pictured below) said the continued positive momentum in sales was reflective of an unwavering commitment to deliver trusted value to customers through lower prices, while providing market-leading customer service and an exceptional fresh food experience.
“Our customers are our principal focus…as we transition to the next phase of the turnaround, we see room for continued improvement in our customer offering,” Durkan said.
