by Coles has appointed a new chief executive officer as the supermarket giant reveals the impact of inflation on its grocery prices.
Leah Weckert has been appointed as the new managing director and CEO of Coles, starting in the role from May 1.
The grocer’s current CEO, Steven Cain, is retiring after five years with the company that saw him see through the supermarket’s demerger from Wesfarmers.
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“I wish Coles continued success and know that the best is yet to come,” Cain said.
Weckert has worked with Coles since 2011 in a range of positions and said she is honoured to take on the new role of CEO.
“We have a transformational strategy that, through the hard work of our 130,000 team members, will deliver better experiences for customers and create value for shareholders,” Weckert said.
“I am excited by the many opportunities and look forward to bringing them to fruition over the years ahead.”
It comes as Coles revealed its half-yearly results showing supermarket prices rose by 7.7 per cent in the second quarter as Aussies struggle with the cost of living hikes.
In the first quarter, prices rose by 7.1 per cent which was a result of dairy inflation and suppliers requesting price rises to cover their bottom line.
“Freight and utilities were the main drivers of the supplier input cost price increase requests,” Coles said in a statement.
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But there was some good news for fresh produce with inflation decreasing from 8.8 per cent in the first quarter to 7.1 per cent in the second.
“Reductions in fresh produce inflation reflect improvements in growing conditions, with several lines in deflation including tomatoes, capsicums, and broccoli,” Coles said.
“This was partially offset by inflation in meat which was driven by white meat due to higher feed prices, and bakery, reflecting higher wheat prices.”
Coles saw a total revenue of $20.8 billion which was a 3.9 per cent increase on the previous half-yearly results.
Profits jumped to $616 million which is an 11.6 per cent rise.
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Outgoing CEO Cain said supplier cost inflation is starting to ease in the third quarter, particularly in produce, which is good news for Australians during a cost of living crisis.
But the crisis is not over yet, flagging suppliers are still battling cost pressures which can be passed on to the consumer.
“Many of our suppliers are however still facing increasing cost pressures and shortages of pallets, raw materials and labour,” Cain warned.
“This has been coupled with increased severe flooding impacting our road and rail networks, particularly for Western Australia and Far North Queensland.
“We are working together with our suppliers, and both state and federal governments, to improve food supply chain resilience for all Australians.”
