August 27th 2024.
Supermarket giant Coles has announced a staggering surge in revenue in its grocery business, leading to an annual profit of $1.1 billion. This news comes at a time when Australian shoppers are facing rising supermarket prices and cost-of-living pressures. Coles, the second-largest grocery chain in the country, saw an 8.3 per cent rise in profit for the 2024 full year, demonstrating their strong performance in the market.
Coles' supermarket business has seen a significant increase in profit margin, from 4.8 per cent the previous year to 5.2 per cent, amounting to $39 billion in revenue. The company credits this success to a combination of seasonal campaigns, collectibles, major trading events like Christmas and Easter, and the growing trend of online shopping. In addition, there has been a rise in customers choosing to purchase Coles' home-brand groceries, further contributing to the company's revenue jump.
On top of its supermarket business, Coles also reported a slight increase in liquor sales to $3.7 billion, and a 7.6 per cent rise in sales revenue from continuing operations. This strong performance is a testament to Coles' efforts to improve availability and quality, address losses, expand their digital offering, and maintain a focus on costs. Coles' CEO, Leah Weckert, acknowledges the current cost-of-living crisis and states that the company has been working hard to provide value across all its offerings to help customers balance their household budget.
This year also marks a significant milestone for Coles, as it celebrates 110 years since its first store opened in Collingwood, Victoria. The company's success is a result of their commitment to providing quality products and services to their customers. However, Coles, along with its competitor Woolworths, has faced scrutiny over price gouging, high profits, and conduct towards suppliers in a recent Senate enquiry. Despite this, Coles remains focused on delivering value and maintaining its strong position in the market.
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