Coles sales fall back to earth after Little Shop, profit falls 29 per cent
Supermarket group Coles’ like-for-like sales growth slowed drastically in the final months of last year, as the sugar hit from its popular Little Shop toy giveaway wore off.
After growing at 5.1 per cent in the first quarter, Coles said on Tuesday that like-for-like supermarket sales growth dropped to 1.3 per cent in the three months to December 30, and that slower momentum had continued into the new year.
Coles’ wildly successful Little Shop collectables campaign, which rewarded shoppers with plastic replicas of popular supermarket items, and its decision to keep giving customers free plastic bags when Woolworths removed them, were credited with its bumper sales growth in the first quarter.
In its first half-year result as a standalone company since being spun out from Wesfarmers in November, Coles reported net profit after tax of $381 million for the six months to December 31 – down 29 per cent from the same period a year earlier. Sydney Morning Herald – Read more…