Cole earnings rise, but inflation hurts both consumers and earnings growth

Supermarket giant Coles has said the higher cost of living is beginning to affect some customers.

During his full-year earnings call, CEO Steven Cain said some shoppers are starting to buy fewer or cheaper products.

“Maybe as many as 20 percent of consumers … are obviously finding it difficult,” he said.

But many households with secure jobs and savings continue to spend freely.

“What we’ve seen in the current quarter is that for the first time, we’re seeing significant increases in transactions, but we’re also seeing decreases in baskets,” Cain added.

He explained that there may also be a delayed impact once more households abandon fixed-rate mortgages.

Suppliers ask for price increase

Coles said inflation in food items jumped to 4.3 percent in the fourth quarter of the fiscal year, bringing the annual figure to 1.7 percent.

He noted that several suppliers requested price increases.

Be the first to comment

Leave a Reply

Your email address will not be published.