WES has just released Q1 comp. store sales growth for Coles of...

WES has just released Q1 comp. store sales growth for Coles of 5.3%, this compares to Woolies Q1 comp. store sales of 3.8%.

So the last 4 quarters Coles has out grown on a comp basis as follows;

Q212 2.6%
Q312 2.7%
Q412 1.7%
Q113 1.5%

A couple of key points

1) The gap is clearly being closed by WOW which is very pleasing. O'Brien is showing that he is reinvigorating the business.

2) Both Coles and Woolies are growing at the expense of smaller retailers. As I have said before this is ultimately not about Coles or Woolies winning but about Coles and Woolies winning at the detriment of smaller retailers.

3) Even though Coles is still outgrowing on a comp. basis Woolies superior EBIT margins means significantly more falls to the bottom line.

I continue to feel WOW is one of the best listed businesses in Australia. Continual earnings growth between 3-6% is inevitable imo.