Coles same-store sales were +6.0% vs. Woolworths 4.8%.
Target and Kmart same-store sales were +1.7% and -1.6% respectively, vs. +0.4% at Big W.
The poor discount store results were consistent with the fact that the stimulus in the base year disproportionately benefited the discount store customer. This suggests the discount stores will continue to languish through the first six months of this year.
The supermarkets will also find it tougher to achieve growth because of temporary disinflation in the sector. More aggressive price competition at retail and lower wholesale prices vs. this time last year will be constraints for them. Please click on the following link to see my article in the SMH/Age yesterday on the Australian supermarket sector: Who wants to be the king of cheap?