Published • loading... • Updated
Australian grocer Coles slips as intense competition dents early second-quarter sales
Coles said price cuts and a relaunch of its value program are aimed at winning back budget-conscious shoppers after first-quarter sales missed expectations.
- On Friday, Coles announced a rare earnings downgrade after first-quarter sales missed expectations, sending shares plunging 7.7% to A$21.66 as the retailer grappled with fierce competition and cost pressures.
- Heightened competition from rival Woolworths and shifting consumer behavior slowed bricks-and-mortar sales, while increased fuel costs tied to Middle East conflict further pressured first-half margin outlook.
- For the 13 weeks ended September 27, group sales rose 2.2% to $11.2 billion, though supermarket revenue growth of 3.6% to $10.3 billion fell short of analyst expectations for 4.2% growth.
- To attract value-conscious shoppers ahead of Christmas, management is taking "deliberate actions to strengthen momentum" by relaunching the Every Day Price program and amplifying Lower Everyday Prices.
- As Christmas trading becomes the "real test," analyst David Tuckwell cautioned that while new promotions may stabilize sales, a full market share recovery in the second quarter appears unlikely.
Insights by Ground AI
16 Articles
16 Articles
Australian grocer Coles slips as intense competition dents early second-quarter sales
(Corrects paragraph 11 to say three-month period ended September 27, not September 30; drop repeated word from paragraph 1) Oct 30 (Reuters) - Australia's Coles said on Friday that heightened promotional activity by competitors hurt early second-quart...
Sydney Morning Herald+3 Reposted by 3 other sources
Billions wiped off Coles as it loses ground to Woolworths
Bargain-hunting by customers and more fierce competition in the supermarket sector have slowed supermarket sales growth at Coles, sparking a share-price plunge that wiped about $3.5 billion off the company’s market value in early trading.
·North Sydney, Australia
Read Full Article
Coverage Details
Total News Sources16
Leaning Left4Leaning Right3Center4Last UpdatedBias Distribution37% Left, 36% Center
Bias Distribution
- 37% of the sources lean Left, 36% of the sources are Center
37% Left
L 37%
C 36%
R 27%
Factuality
To view factuality data please Upgrade to Premium
