[ad_1]
Coles’ massive profit jump on the back of shelf-stripping panic buying during the pandemic was driven by the surge in sales of its Coles-branded items.
Private-label brands owned by Coles, including Wild Tides tuna, Daley St coffee, Koi soap and Woofin’ Good dog food, accounted for 32 per cent of the supermarket’s sales in the last six months of 2020.
Sales of the Coles-owned brands spiked 10 per cent during the last half of the year which helped boost the supermarket’s retail profit.
The supermarket giant posted retail profit of $560 million for the half year in its financial results released on Wednesday.
RELATED: Pandemic buying lifts supermarket sales
RELATED: Boozy Aussies drive Coles’ profits
Coles’ CEO Steven Cain commented that the rapid growth in the retailer’s own-brand products has “gone down very well with customers”.
“When we started the own-brand development many years ago it was very focused on the entry price point, making sure that there was great value at that end of town,” he said.
Mr Cain added that Coles was now focusing on “the other end of town, so to speak … affordable luxuries”.
He also revealed the supermarket was aiming for a sales target of 40 per cent for its private labels for the upcoming financial period.
The supermarket added 1200 new products onto shelves during the half year.
“The most successful of these new products were in the convenience and Christmas ranges, including the Coles Kitchen family ranch salad kit and Own Brand’s pork loin roast with apple, cranberry and thyme stuffing,” the retailer said.
Own Brand won 24 product awards including a record 11 Product of the Year awards across products such as Coles finest chocolate and hazelnut mousse, Urban Coffee Culture dark roasted beans and Koi jasmine and sandalwood handwash.
The Coles Kitchen ‘balanced for you’ healthy meals range was also launched during the period which the supermarket said “has been well received by customers”.
The retailer said elevated sales continued as a result of COVID-19 panic-buying frenzies, with customers filling their baskets and trolleys more despite fewer shopping trips.
Liquor sales remained strong overall but tapered off in the second quarter as restrictions around the country eased, although drinkers continued to favour larger pack sizes of beer, ready-to-drink beverages and spirits.
Coles completed 30 supermarket renewals during the half year and opened 11 new stores while closing only two, bringing the total number of supermarkets in the group to 833.
Shareholders received an increased dividend of 33 cents per share on the back of the favourable profit results.
[ad_2]
Source link
