Wesfarmers has reported “strong sales momentum” for the first quarter of 2011 and is on track with company expectation; however it will remain cautious to the lead up of Christmas.
At the annual meeting, Richard Goyder, Wesfarmers managing director, said the positive result is underlined by Coles food and liquor comparable store sales growth of 6.2 per cent.
“The progress that we have made in Coles is most evident by the fact that today, Coles Supermarkets enjoy the patronage of an extra 1.5 million customer visits per week compared to when we first acquired the business just under three years ago, and the business continues on this good trajectory,” he said.
For the 2010 financial year Coles supermarkets, liquor, and convenience recorded operating revenue of $30.0 billion, a rise of 4.2 per cent on the prior corresponding period.
Goyder also noted that growth was strong with Kmart and Officeworks while results in Bunnings and Target were “still pleasing”.
“Given the backdrop of the significant growth reported by Bunnings in the prior corresponding period, wetter and cooler weather conditions across many of these two businesses key markets on the east coast of Australia and an environment where price deflation was evident in the market,” he said.
“We continue to remain cautious towards potential negative factors, such as increasing interest rates and general economic uncertainty, which would place additional pressure on household budgets or consumer confidence.
“This is particularly so in the lead up to Christmas.”