Coles sales boost credited to ecommerce growth

Coles Group has attributed its sales growth during the latest quarter to its ecommerce channels and said 250 stores will have Skip Scan and Smart Gate technology operating by the end of the year. 

Both Skip Scan (cameras) and Smart Gates are technology-based loss prevention measures being installed at self-checkouts.

A Coles spokesperson told iTnews that “while most of our customers do the right thing, unfortunately a small number don’t.”

“Coles has a range of security measures in place to reduce theft from our stores including CCTV, electronic article surveillance (EAS), and in some stores, Skip Scan technology and new Smart Gate technology that automatically opens as customers make payment for their products," the spokesperson said.

“Additionally, trolley lock technology has been in place at a number of our stores in recent years and this technology uses sensors to prevent trolleys leaving the store if someone hasn’t first paid at a register.”

The supermarket giant released its 2024 first quarter sales results on Thursday stating its ecommerce sales underpinned growth in supermarkets and liquor divisions [pdf]. 

Its results reflect the 13 weeks from June 26 to September 24.

Coles recorded total group sales revenue of $10.25 billion in its first 2024 quarter, a 3.6 percent rise from $9.89 billion the previous quarter. 

Total ecommerce sales reached $852 million, compared to $684 million in the prior first quarter. 

The rise in ecommerce sales growth was accelerated by digital, with supermarket ecommerce revenue up by 24.6 percent.

Meanwhile, its “liquor ecommerce revenue grew by 32.2 percent with strong growth in the on-demand channel.”

Coles Group CEO Leah Weckert said the business “added several features to make it easier and faster for customers to find value through our digital platforms.”

Coles’ app users increased by 39.4 percent in the quarter as new features were introduced such as ‘shop similar’, which allows customers to find alternative items, and digital shopping list enhancement, which led to a higher average order value.  

Its Flybuys active members increased by 9.9 percent during the quarter and more tailored member offers saw participation rise by 22 percent. 

Its media business, Coles 360, which we launched in October 2022, rose 33.5 percent.

During the first quarter, Coles said its Automated Customer Fulfilment Centre (CFC) transformation project has begun “progressing in line with revised schedule communicated at FY23 results; bots successfully operating on the grid at both sites”.