Coles has reported total food and liquor sales growth of 4.6 percent for the 2011-12 financial year and comparable sales growth of 3.7 per cent.

Total food and liquor sales for the fourth quarter increased 4.6pc to $6.5 billion, while comparable store sales increased 3pc.

Coles managing director Ian McLeod said the comparative sales performance during the quarter was pleasing given record price deflation driven by significant fresh produce deflation and Coles ongoing price reinvestment.

Food and liquor price deflation was 4pc in the fourth quarter, taking total food and liquor price deflation to 2.9pc for the financial year

In a release reporting the fourth quarter results, Mr McLeod said strong growth in sales volumes during the fourth quarter continued to demonstrate the momentum of the Coles turnaround.

Higher volumes reflected good growth in the number of customers shopping at Coles and bigger shopping baskets, he said.

Mr McLeod said re-launch of flybuys and investment in 52 new and refurbished stores in the fourth quarter had helped to drive positive sales uplifts.

Coles opened 19 new supermarkets and closed 11 supermarkets during the financial year to achieve net growth in supermarket selling area of 1.9pc, one percentage point higher than the previous year.

During the fourth quarter Coles opened seven new supermarkets and closed three supermarkets, resulting in a total of 749 supermarkets at the end of the financial year.

Coles also opened three new liquor stores and closed four liquor stores in the quarter, resulting in a total of 792 liquor stores at the end of the financial year.

Wesarmers group managing director Richard Goyder said the sales performance of the retail portfolio was pleasing overall.

“Over the year, all of our retail businesses have worked hard to deliver an improved customer offer and genuinely better value,” Mr Goyder said.

“This has seen a strong focus on reinvesting savings made from improved business efficiencies into lower prices for our customers.

“While this has added to price deflation during the year, the strategy has been rewarded through significant growth in customer numbers and units sold.”