Price-driven marketing pays off for Coles and Bunnings, but Target hit by sales decline

Wesfarmers marketing strategy to promote “every day low prices” across its brands has seen largely positive results in the third quarter with only Target failing to see a sales lift.

Coles, which is locked in a price war with Woolworths, reported a sales increase of 5.4 per cent to $7.1bn in the three months ending March, taking sales for the financial year to almost $23b, also up 5.4 per cent.

Prices fell one per cent during the quarter, 0.8 per cent for the year, “reflecting continued investment in lower prices”, the supermarket said.