Coles has reported sales growth of 0.3%, following a challenging year with supply chain disruptions.
Supply chain disruption
Coles' overall performance was impacted by ongoing price cuts that resulted in price deflation for the year of 0.8%, coupled with cost inflation and supply chain disruption caused by Cyclone Debbie. Its core business continued to see modest growth, aided by new store openings, with sales growth of 0.3% to AU$38,725m in the 52 weeks ending 25 June 2017, with EBIT declining 13.5% to AU$1,609m.
Investing in availability
Coles continued to make improvements through the year focusing on price, range, service, quality and availability, with a view on long-term sustainable benefits. The retailer continued to simplify its range, helping improve availability and put more emphasis on product innovation, plus invested in additional in-store hours and staff training courses.
Managing director, Richard Goyder, said: "In a very competitive environment, Coles invested in value, service, and better quality and availability in Fresh, to deliver continued growth in sales. Coles continued to execute its customer-led strategy, which it expects will provide a platform for sustainable growth in earnings and return on capital over the long term."