Small Profit Growth for Coles Liquor

Coles Liquor’s performance was further bolstered by price investment, Liquorland store renewals and range simplification during the half year ended December 31, according to parent company Wesfarmers.

Coles Food and Liquor recorded sales growth of six per cent for the half. Divisional earnings were up 5.6 per cent to $945 million for the half on revenue growth of 3.1 per cent.

The announcement came two days before that of rival Woolworths, which will report its half-yearly result on Friday February 26.

Coles Managing Director John Durkan said the Liquorland store renewal program has been accelerated following encouraging early results with the 170 stores that have already converted to the new format.

“Half on half, year on year, we’ve seen a small profit growth out of our liquor business,” he told analysts.

The liquor division opened 19 and closed 13 outlets over the half, bringing its total network of stores and hotels to 954 as at December 31.

Durkan said upcoming priorities for the liquor division include the expansion of its exclusive brands offer, as well as growing its Liquor Direct business, while a First Choice Liquor store renewal trial is currently underway.

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