Coles Little Shop 2 collectables failed to deliver sales results
As the supermarket giant rolls out its new collectables campaign aimed at adults, the sales growth numbers are in for the Little Shop 2.
Retail
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The latest instalment of Coles’ collectables campaign Little Shop 2 fell short of delivering the same sales growth as the original.
Supermarket sales grew by just 0.1 per cent at the major chain in the three months to September 30.
This compares to the 2.2 per cent rise in the June quarter and the whopping 5.1 per cent jump in the September quarter last year, which was boosted by the phenomenon of the first Little Shop.
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Coles attributed the relative slowdown to the success of last year’s campaign as well as the competition from the wildly successful Lion King Ooshies promotion at rival Woolworths.
Nonetheless, the result beat some analysts’ predictions of a decline and Coles shares were up 1.58 per cent to $14.79 by 10.10am (AEDT) on Tuesday – clawing back some of the 2.67 per cent lost a day earlier.
The move meant the shares were 18.4 per cent higher since Coles’ November spin-off from Wesfarmers.
Coles chief executive Steven Cain wouldn’t reveal if there would be a third outing for the range of miniature grocery items but the supermarket did launch a collectables campaign with a difference.
“I’m not going to talk to the marketing program for the next year or so,” he said.
“We have said previously that there will be the end to collectibles – but it is too early to call when that will be.”
Mr Cain said the company’s internal metrics reveal the Little Shop 2 campaign was more engaging than the original promotion but the increased competition stunted the impact to sales growth.
“Without Little Shop 2 the result certainly wouldn’t have been as good as it was,” he said according to the Australian Financial Review.
Queensland University of Technology retail expert Dr Gary Mortimer said the supermarket giant was always going to struggle to compete with the surging sales growth from last year.
“But on a positive note, they were at least able to reach the previous corresponding quarters for sales,” he told news.com.au.
“Some commentators expected a potential decline but they at least achieved the same results they had in Q1 2019.”
Coles’ latest campaign kicks off tomorrow and features a range of fine dining glassware as part of the supermarket’s Christmas promotion to spruce up tables for lunch and dinners.
Customers can earn credit towards wine glasses or champagne flutes when spending $20 or more in Coles supermarkets, Liquorland and First Choice stores.
Each $20 equals one credit, and once they have 25 credits – the equivalent of $500 – they can redeem a box of two Spiegelau glasses.
“We want to inspire our customers and give them something special to share with their family
and friends,” Coles chief marketing officer Lisa Ronson said.
“When we did the fresh food container giveaway earlier in the year our customers loved it because it was something really useful. This glassware is beautiful and looks great on the dining table when entertaining.”
The promotion was announced as part of the launch for the supermarket’s 2019 Christmas range, specifically catering for those who find pulling together the highly-anticipated festive lunch a little too much.
“Our mission is to help all Australians to have healthier, happier lives,” Mrs Ronson told news.com.au.
In the September quarter, liquor sales rose 3.5 per cent to $726 million, with comparable growth halving to 0.7 per cent due to the timing of public holidays.
Similarly, convenience sales rose 3.1 per cent to $264 million but comparable growth moderated from 3.4 per cent to 0.4 per cent.
Coles’ shares were worth $14.56 before Tuesday’s open, having climbed 16.6 per cent since the company’s November 2018 listing following its spin-off from Wesfarmers.
– additional reporting from AAP’s Alex Druce
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Originally published as Coles Little Shop 2 collectables failed to deliver sales results