Despite an uncertain global environment, Wesfarmers says Coles sales are on track with total food and liquor sales up 7.6 per cent to $5.3 billion for the quarter to March.
Adjusted for Easter, same-store food and liquor sales were up six per cent in the March quarter, while comparable fuel and convenience sales were up eight and 3.8 per cent respectively.
Sales for Kmart, another Wesfarmers division, were poor in January and February, but comparable sales for 14 weeks to 13 April were in line with last year (+0.1 per cent), due mainly to the government’s stimulus package, said Kmart chief executive Russo.
“We still have a lot to do and we anticipate trading performance to be soft,” he said.
“Market conditions will remain challenging and the immediate focus is on getting the basics right.”
However, there is continued strong performance from Kmart Tyre & Auto.
Bunnings has been trading quite well so far with cash store-on-store sales up 11.1 per cent and this growth is expected to continue.
“Bunnings has had growth across all merchandising categories and a good performance across all stores,” said the company.
“However, trade market conditions are still challenging and the continued cash sales growth can be affected by an extended downturn.”
Wesfarmers plans to open 13 new Bunnings stores this year.
Despite a volatile and inconsistent market, Target sales for the quarter to March were up 6.1 per cent, while same store sales were up 2.9 per cent (14 weeks to 13 April).
The company also plans to upgrade 39 Target stores in 2009, with 21 completed so far.