Australia news

Costco’s net sales increased 16.1% in the second quarter, maintaining its strong pace of growth despite tough comparables from last year. Against this backdrop of growth, we look at how it is navigating cost and supply chain challenges. Q2 key numbers Net sales increased 16.1% to $50.9 bn Comparable sales (ex-fuel and currency impacts) up 11.3% in the US, 12.4% in Canada and 9.0% in o...

Woolworths Group has reported HY results for the period ending 2 January 2022, with sales up 8.0% to AU$31,894m, but EBIT down 11.0% to AU$1,382m. We pull out our top five learnings… 1. COVID and new revenue streams skew the big picture Woolworths Group CEO, Brad Banducci, described the period as ‘one of the most challenging halves’ for the retailer. A focus on customers, team and the broad...

Coles has released its FY22 half year results with gross sales up 1.8% to AU$21,204m and EBIT down 4.4% to AU$975m. Supermarkets' sales up 2.0% to AU$18,582m Despite being up against strong comparatives, Coles continued to drive growth within its supermarkets division, with LFL sales growth of 1.4% in Q1 and 1.6% in Q2. On a two-year basis sales remained inflated, up 9.6%. As restrictions e...

Despite cycling strong performance in FY21, Metcash has reported half year results for FY22 with revenue up 1.5% to AU$8.2bn and EBIT up 13.9% to AU$231m. We pull out five key learnings and assess the outlook for H2: 1. Underlying food sales remain very healthy Food sales decline 4.9% to AU$4,561m. The decline in sales is mainly due to the cycling of the termination of its supply agreement ...

Coles has announced two major changes to its executive leadership team that will take effect over the coming months. New Chief Executive for Commercial & Express Leah Weckerts will take up the position of Chief Executive, Commercial & Express from Greg Davis in April 2022. Weckerts has been the CFO at Coles since March 2018, but having joined the business in 2011 has had numerous roles acro...

Woolworths and Coles have both released Q1 FY22 results, with Woolworths sales up 7.8% to AU$16,070m and Coles sales up 1.5% to AU$9,756m. We compare the performance of both retailers and pull out the key learnings from both statements. A particularly challenging quarter for both retailers Both retailers highlighted the challenges that they have faced in Q1 with ongoing lockdowns across NSW...

Coles has followed Woolworths by launching its own marketplace websites that will offer an extended range of general merchandise items. Exclusive range of products not available in Coles stores Woolworths introduced its Everyday Market platform last month , with Coles now having launched a new marketplace platform bestbuys.coles.com.au . The website will offer an exclusive range of Coles ...

We round up some of the recent developments from Australia's food and consumer goods market, including; new vaccination policies, senior appointments, business restructures, new sustainability initiatives and innovative product ranges. 1. Leading retailers make COVID-19 vaccination compulsory Woolworths, Coles and Aldi have decided to make it a mandatory requirement for all store, DC and of...

Metcash has announced that Doug Jones will succeed Jeff Adams as the CEO of Metcash in Australia. Significant retail and wholesale experience Doug Jones is the existing CEO and senior vice president of Massmart Wholesale in South Africa and will take over as Metcash CEO on 1 February 2022. It will be the second time in less than a year that we have seen a senior executive move from a South ...

Coles has taken the decision to close all of the butcher counters within its stores and will instead rely on pre-packed products. New consistent category operating model Through its ABC format strategy Coles has been becoming more selective in terms of the counters it deploys in-store in recent years. In lower performing stores or those in low affluence locations, it has been striping out c...