Coles has announced its first quarter results, which show that cost-of-living is clearly front of mind for customers.
👉 Background: Coles is Australia’s second largest supermarket chain. And Coles made headlines earlier this year when it announced its juicy profit figure of $1.1 billion.
👉 What happened: Now, Coles has announced its first quarter results, which show that cost-of-living is clearly front of mind for customers. In fact, Coles’ customer survey showed that 20% more Aussies were looking to cook at home this year than last year.
👉 What else: And while Coles saw its revenue increase by 3.6%, its private-label products jumped up by 9.4%. Private label - you the real MVP.
💡In challenging economic times, private labels can be a retailer's secret sauce. These are the products that a retailer produces through a third party but sells under their own brand-names.
💡The private label goods are usually cheaper than the more recognisable, national brands and also have higher margins for Coles than the national brand.
💡And in these times, where customers are looking to spend less, private label brands are a more affordable option. So it’s no surprise that Coles wants to get its private label brand to 40% of all sales.
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