Record results at Coles Myer
Turnaround continues at Australian retail group
Coles Myer, Australia’s biggest retail group, has reported record profits for the year to July 25 as it continues to see the benefits of a five-year programme to drive sales growth.
Underlying profits grew by 26.5 per cent to A$576.5m, with group sales up by 19.4 per cent to A$32.3bn.
Coles Myer chief executive John Fletcher said: “This is the highest annual profit in Coles Myer’s history, an outstanding result in which all of our major businesses have significantly improved their quality of sales and earnings.
“Three years into our five year turnaround journey, we have delivered against the progressive strategic milestones we set for ourselves. Profit and sales have grown double-digit, our balance sheet is strong, we are running ahead of our cost savings targets and our cash flows are excellent.”
The group’s retail chains including the Coles and Bi-Lo grocery brands, department store group Myer Grace Bros, discounter Kmart, clothing chain Target, stationer Officeworks, and furniture and electricals store Megamart.
The food and liquor business, which last year saw the appointment of former Asda marketing director Steven Cain as managing director, has reported its best annual profit growth in six years, while the non-food businesses have made ‘excellent’ progress.
The newly launched Coles Express fuel and c-store format h has been one of the group’s star performers in its first year of trading, now operating from 598 sites.
As part of a strategy to ‘delight’ customers, the group has upgraded its retail loyalty program, which includes the popular Coles Express fuel discount. The Coles, Bi-Lo, Liquorland, Vintage Cellars, Target, Kmart, Myer, Megamart and Officeworks chains are all offering brand-specific gift cards.
Fletcher said the group is well on the way to achieving its A$800m profits target for 2006, with more opportunities ahead to grow the business.
