Conglomerate Wesfarmers Ltd
(ASX:WES) says its Coles supermarket chain has had a solid first quarter with total food and liquor sales up 7.3 per cent, 6.1 per cent on a same store basis.
Fuel and convenience sales rose 6.5 per cent and 1.3 per cent on a like-for-like basis.
Managing director Ian McLeod told an investor briefing this morning that the key drivers of food and liquor sales in the quarter were solid volume growth and customer transactions, better fresh quality, improved service and that inflation in the first quarter had been flat.
Mr McLeod says consumer sentiment is improving but that customers remain value conscious.
He says that consumers are cautious about rising interest rates and higher petrol prices and that food and liquor inflation will remain low.
Mr McLeod says progress on the Coles renewal strategy has been encouraging and that the company is confident of creating a solid foundation for future growth.
Wesfarmers profit of $1.5 billion in 2009 was its best in the last five years.
