Digital sales have continued to drive growth for Wesfarmers in the first quarter of FY21, the business has revealed in a trading update.
In the year to date (to October 2020), the Group’s retail businesses delivered total online sales growth of 166%, excluding Catch.
Excluding online sales in metropolitan Melbourne, which were significantly elevated due to lockdown restrictions, the business reported 98% growth in digital sales.
Including Catch, Wesfarmers reported that online sales across the Group increased to $1.3 billion in the year to date.
Across the Group's brands, Catch, Bunnings and Officeworks were the top performers, reporting total sales growth of 114.4% (gross transaction value), 25.2% and 23.4% respectively.
It's major apparel retailers Kmart and Target reported total sales growth of 3.7% and -2.2% respectively.
In its report, Wesfarmers said that reduced apparel sales offset growth in other categories at the department stores.
"In Kmart and Target, continued growth in home, active and kids categories was partially offset by lower customer demand for apparel products.
"The government-mandated temporary closure of 38 Kmart stores and 32 Target stores in Melbourne impacted sales, partially offset by very strong online growth.
"Excluding metropolitan Melbourne stores, total sales growth of 12.1 per cent and 6.7 per cent was recorded for Kmart and Target respectively for the year to date.
"Digital capabilities within Kmart Group continue to expand and online penetration, excluding metropolitan Melbourne, of 7.8% and 13.2% was recorded for Kmart and Target respectively for the year to date," the business said.
Continuing its work to address the underperformance of Target, Wesfarmers converted nine large-format Target stores into Kmart stores, while six Target Country stores were turned into K Hub stores in the year to date.
Meanwhile, Catch grew its customer base to 2.7 million active customers to the end of October 2020, compared to 2.3 million at the end of FY2020.
Wesfarmers reports that Catch is continuing to invest in its technology, marketing and customer offer to accelerate growth in gross transaction value.