Coles' discounting strategy 'resonates with shoppers'
Coles is outpacing the sales growth of its grocery rival Woolworths by tempting shoppers with wide-ranging discounts, it has been suggested.
New figures from Coles show a 6.7 per cent rise in headline second quarter sales at the supermarket chain – a significant increase on the 3.8 per cent growth reported by Woolworths last week, the Courier-Mail reported.
The result, which was the tenth straight quarter of like-for-like sales growth at Coles, was put down to a strategy by the company's management to "get price trust back" from customers through discounts and offers.
"We've been doing that through the fuel discount promotions, the 'Down, Down' (campaign), the super specials and we're doing it with some product lines as well including milk," Richard Goyder, chief executive of parent company Wesfarmers, told the Courier-Mail.
"That's clearly resonating with customers."
Shoppers aiming to boost their spending power could also choose to compare debit cards and other money products in search of the best options. It was noted that Coles recorded food and liquor price deflation of 0.2 per cent in the sales quarter period – or a 1.6 per cent price fall when the effect of a higher tobacco excise was removed.
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