Retail bolsters Wesfarmers performance
“Our portfolio of businesses overall, is tracking to expectations, with good momentum in our retail divisions being offset by the performance of our industrials division, notably the difficult trading experienced in our resources business,” said Goyder.
For FY15 Wesfarmers has reported net profit after tax of $2.4 billion for the full-year, representing an underlying increase of 8.3 per cent.
Goyder says retail sales for the first quarter of the financial year across it’s retail portfolio have been pleasing, supported by the continued reinvestment into lower prices, improved customer service, better ranges and further store network optimisation.
Coles and Bunnings continue to perform strongly with the groups other retailers Officeworks, Kmart and Target also meeting expectations.
Coles food and liquor sales increased 4.7 per cent during the 2016 first quarter, with Bunnings total sales increased 11.6 per cent. Officeworks total sales growth of 6.5 per cent built on the growth recorded in recent years, with customers positively responding to channel strategies. Kmart recorded total sales growth of 12.5 per cent for the quarter, supported by good performances in home, kids and apparel categories. Target’s total sales increased 3.1 per cent during the quarter.
In the resources division, the continued low export price for coal meant trading conditions remained difficult, Goyder said.
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