Supermarket retailer Coles – owned by Wesfarmers Ltd (ASX: WES) may have one very good reason why it continues to deliver better quarterly sales growth that its main rival, Woolworths Limited (ASX: WOW).
According to Roy Morgan Research, 3.8 million Australians read Coles Magazine, ahead of Woolworths' offering Fresh, which brings in 2.1 million readers. And around 75% of those readers are naturally the household's main grocery buyer. The magazines are usually available for free in store.
While the data is from March 2014, it clearly shows that Woolworths is behind the eight ball and is struggling to compete with Coles on several levels.
Both magazines offer recipes, product advertising and news, and cooking tips as well as playing off their partnerships. Coles features Masterchef heavily through its latest magazine, integrating its advertising and sponsorship of the cooking show on Ten Network Holdings Ltd (ASX: TEN), as well as featuring its partnership with chef Curtis Stone.
The magazines are also available online in digital and app form – and even feature step-by-step videos – although Coles is well ahead of Woolworths here too.
Clearly, there's more to getting people to shop at your store than sending out junk mail catalogues.
