Cole’s e-commerce liquor sales doubled for FY22 Q3 when compared to FY21 Q3, with sales of $33m contributing to the 2.9 per cent lift in liquor sales to $781 million.
Liquor sales rose across all states despite the rise of Omicron and the impact of flood events which saw 66 stores close and seven remaining closed at the end of the quarter.
Limits on social gatherings in the first quarter meant that consumers opted for larger pack sizes in the aisles of Coles Liquor stores and that local shopping trends re-emerged.
For the group as a whole, flood events have cost Coles $30m to date, not counting profit loss. The insurance claim process is in motion. The $30m in flood costs is in addition to $65m in costs for the quarter (compared to $10m in last year’s corresponding period) due to isolation requirements in stores and distribution centres, the implementation of ‘shift bubbles’ and covid testing operations for workers.
Liquorland continued to be the strongest performing banner and during the quarter, Coles renewed 36 stores and opened two new ones and shut down five, taking its network to 928 liquor sites.
Cost increases are expected across the group in line with supplier cost inflation in the coming months.
Coles Group CEO, Steven Cain said, “Coles Group remains focused on our commitment to deliver trusted value for Australian families amid growing cost of living pressures driven by both local and global supply circumstances.”
And looking ahead, Coles said: “We continue to manage the ongoing impacts from the highly disruptive events from the third quarter, pleasingly availability continues to improve as the supply chain recover. COVID-19 costs are expected to continue to moderate further, particularly as public health requirements are eased.”
Coles Group revenue was up 3.6 per cent for Q3 when compared to Q3202 with revenue takings of $9.08b.