SYDNEY: Australia’s Coles flagged deflation in its fresh produce and meat products, with a moderation in price rises across its broader packaged categories amid a cost-of-living crisis sparked by stubbornly high inflation.
The supermarket operator, which competes with bigger rival Woolworths, posted a 3.4% rise in third quarter revenue yesterday, reflecting a jump in sales at its primary supermarkets operation helped by strong volume growth.
Inflation numbers in Australia have eased over the last quarter but still remain comparatively high. Signs of cooling inflation helped drive sales of Coles’ key grocery items.
The company posted sales of A$10.03bil for the quarter, with revenue from supermarket business contributing A$9.07bil, a 5.1% rise from a year earlier.
Australia’s No.2 supermarket operator, which operates more than 800 supermarkets across the country, indicated volumes at its major supermarket operations remained positive during the early days of the fourth quarter.
Sales revenue from liquor operations dropped 1.9% as customers cut down on discretionary spending, Coles said.
“Overall Coles’ third-quarter result was above our expectations in supermarkets but below our expectations in liquor,” said E&P Capital retail analyst Phillip Kimber. — Reuters