Wesfarmers has announced its retail sales results for the fourth quarter and 2010 financial year.
Managing director, Richard Goyder said the retail divisions’ sales performance for the year was solid overall, especially given the positive impact of the Australian Government stimulus payments on sales in the prior corresponding period.
“Good progress continues to be made on growth strategies across the group’s retail businesses, with customers responding well to improvements in product range, value and service,” he said.
“Over the last 12 months, our retail businesses have established or reinforced sound business platforms and have strategies in place to further improve the customer experience. This leaves the Group well placed for the 2011 financial year.”
The Coles division reported solid sales for the year, underpinned by strong customer growth, as it completed the first phase of its turnaround program. Deflation continued in the second half of the year, driven by fresh produce deflation and continued investment in lowering everyday prices. Fourth quarter food and liquor price deflation was 1.4 per cent, despite the increase in tobacco excise during this period.
Bunnings’ sales growth was strong for the year, as the business continued to invest in its retail and trade network. Officeworks reported pleasing sales growth for the year, as customers responded positively to a revitalised offer.
Target and Kmart both reported marginally positive sales growth for the year, achieved in what was a difficult trading period in the second half, primarily due to cycling the Australian Government stimulus package, and a competitive retail environment that put downward pressure on prices.
Both businesses saw positive customer growth in the second half, in particular in Kmart where it continued to significantly restructure its customer offer.