Wesfarmers (ASX:WES) on Thursday reported solid growth in sales at its Coles and Bunnings divisions.
But the company also revealed a decline in Target's performance for the quarter, and flat growth at Officeworks and K-mart.
Total Coles sales grew 8% during the quarter to $8.1 billion. Coles Food & Liquor grew headline sales 5.5% to $6.3 billion, despite price deflation of 1.8% during the quarter.
Convenience and fuel store chain Coles Express grew fuel sale volumes 5.2%, and store sales excluding fuel by 1.8%.
Coles managing director Ian McLeod said the results show that Coles has “maintained momentum from the last quarter” despite the tough retail environment.
The Bunnings home improvement division boosted sales 8.5% to $1.7 billion during the quarter, and opened three Bunnings Warehouses and two trade centres.
But Target sales fell 1.4% to $835 million, in a result Wesfarmers managing director Richard Goyder blamed on price deflation and increased promotional activity in the department store market.
K-mart sales grew just 0.1% to $927 million, and office supply sales, from the Officeworks and Harris Technology chains, increased 0.3% to $361 million.
WES shares declined 1.99% on Thursday to $31.540.
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