Wesfarmers has revealed first quarter 2012 sales results for both Target and Kmart, with both retailers delivering lacklustre figures.
The report, for the period June 27, 2011 to September 2011, saw Kmart total sales up by 0.1 per cent to $927 million for the quarter, with comparable store sales increasing 0.5 per cent.
Overall, Kmart managing director Guy Russo said the “apparel and home categories performed well during the quarter, although a softer performance was seen in areas that have recently undergone either significant change or promotional change”.
Kmart's sister company Target, however, fared worse, reporting a sales decline of 1.4 per cent to $835 million, with comparable store sales down 4.1 per cent.
Target managing director Launa Inman, who is due to step down next month, said the difficult trading conditions continued through the first quarter with the business remaining focused on competing effectively in the current environment.
“Customers continue to be very value
driven and their behaviour is being influenced by the continuous
promotions and heavy discounting in the marketplace,” she
said.
“Trading conditions were tough. August was the only
month with a positive sales outcome and we are seeing the poor sales
outcome in September extending into October.”
Despite flat sales for both retailers, Wesfarmers managing director Richard Goyder said he was generally pleased with the results, particularly given that consumer sentiment has remained subdued throughout the quarter.
“Target continued to experience difficult trading conditions with sales negatively affected by ongoing deflation and a high level of promotional activity in the market,” he said.
“Kmart sales were broadly flat as investment in lower prices and deflation, was offset by another quarter of solid growth in volumes and customer transactions.”