Wesfarmers' supply chain aids sales


Wesfarmers’ supply chain initiatives have shared in praise for strong quarterly sales results

Wesfarmers' supply chain aids sales
Wesfarmer's supply chain aids sales

By Sean Muir |
October 26, 2012



Wesfarmers’ supply chain initiatives have shared in praise for the company’s strong quarterly sales results released this week.

Wesfarmers' Coles food and liquor sales division reported $6.6 billion in sales for the first quarter of the 2013 financial year, up 4.9 per cent on the previous corresponding period.

Highlighting the results, Coles Managing Director Ian McLeod noted key business initiatives such as a new 'state-of-the-art' distribution centre in Truganina now servicing stores in Victoria.

McLeod says during the quarter Coles also opened one new supermarket and closed three supermarkets, resulting in a total of 747 supermarkets.

He says six new liquor stores were opened and 10 stores were closed during the period as Coles continued to improve its liquor store network, resulting in a total of 788 liquor stores at the end of the quarter.

Wesfarmers’ home improvement division reported $6.6 billion in sales for the 2013 financial year, up 4.9 per cent on the previous corresponding period.

Home Improvement and Office Supplies Managing Director John Gillam says store transaction growth remains robust due to the ongoing evolution of the Bunnings offer.

"Good progress continues to be made on key strategic initiatives, particularly in service, merchandising and our supply chain," Gillam says.

During the quarter, three Bunnings Warehouses and three smaller format stores were opened.

A further 11 sites were under construction at the end of September, with a pipeline of store openings scheduled for the next 24 months.

Wesfarmers’ office supplies division reported total sales for the quarter of $362 million, 0.3 percent above the previous corresponding period.

Gillam says the business is working hard to improve its ‘every channel’ offer to customers in order to offset challenging trading conditions.

"Expanding and renewing the store network while continuing to invest in the online offer remained key areas of focus," he says.

"The business also continues to make good progress in expanding its presence in the B2B segment of the market."

Target reported total sales of $853 million for the quarter, 2.2 percent above the previous corresponding period, while Kmart total sales were up 3.1 percent above the previous corresponding period, at $956 million for the quarter.

Kmart Managing Director Guy Russo says sales growth for the quarter was achieved through improved product availability.

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