Low prices check revenue
Countdown sales rose 1.1% to $1.5 billion.
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Countdown sales rose 1.1% to $1.5 billion in the 14 weeks ended October 5, from $1.48 billion in the year earlier period as it benefited from sales at new stores.
Same-store sales fell 0.1%, impacted by flat inflation and continued subdued grocery industry market conditions. Higher dairy prices were offset by lower prices across other products, including grocery, bread, liquor and produce.
Managing director Dave Chambers says price-cutting campaigns resulted in more people buying these products, leading to growth in customer transactions and items sold.
Countdown now has 172 stores and also operates 59 Fresh Choice and Super Value franchise stores. In the year earlier period, it had 166 Countdown supermarkets and 56 franchise stores.
In Australia, parent company Woolworths posted a 3% rise in first quarter sales to $A16.12 billion, which it said was less than expected because of discounted prices.
NBR Food Industry Week
Wed, 12 Nov 2014
Wed, 12 Nov 2014
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Low prices check revenue
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