Coles Group reported above market growth in Supermarkets in 3Q26, which the retailer attributed to consistent execution, continued focus on value and availability, and improved customer satisfaction.

“We delivered another strong sales result reflecting the strength of our customer offer and disciplined execution against our strategic priorities,” said Coles Group CEO Leah Weckert.

“Achieving consistent sales momentum for the period over multiple years demonstrates our commitment to remaining focused on long term outcomes whilst successfully navigating short term volatility in market conditions and supply chains.”

Supermarkets

Supermarkets sales revenue of $9.8 billion for the third quarter increased by 4.0% with comparable sales increasing by 3.6%. Excluding tobacco, sales revenue increased by 5.7%.

Coles says strong volume growth was underpinned by a continued focus on value, including an expanded everyday value range and targeted weekly promotional activity, alongside strong customer engagement in its Summer value campaign and ‘Shop. Scan. WIN!’ and KitchenAid cookware promotions.

Exclusive to Coles sales increased 7.3% supported by ongoing innovation including 142 new product launches, a new Coles Kitchen salad range and the refresh of the Coles Simply range. Across the portfolio, Coles Finest remained the strongest performing tier with revenue increasing by 8.2%.

eCommerce sales revenue increased by 24.8% with penetration increasing to 13.6%, reflecting continued momentum across all fulfilment channels. Sales growth remained strong throughout the quarter, with penetration reaching 14.2% in March.

During the quarter, Coles completed 17 supermarket renewals and two new supermarkets were opened, including an integrated food and liquor store in Glen Iris, Victoria.

Other business

Flybuys active members increased by 5% to 10.3 million and total Coles Plus and Coles Plus Saver subscriptions increased by 75%, as customers seek to maximise value across their basket.

Liquor sales revenue declined by 3.9% to $781 million, with comparable sales decreasing 4.3%. Sales across its convenience portfolio, representing approximately 90% the store network, remained resilient and broadly in line with the prior corresponding period, while warehouse stores continued to experience a more pronounced impact.

Revenue of $141 million was recorded in the third quarter in the Other segment relating to the Product Supply Agreement (PSA) with Viva Energy Group Ltd. The PSA is due to expire by the end of November 2026.

Looking ahead

In the early part of the fourth quarter, Coles Supermarkets sales revenue growth has remained broadly in line with the third quarter.

With geopolitical tensions contributing to higher fuel and other commodity input prices, the retailer says its focus remains on continuing to provide customers with a compelling value proposition that supports their everyday needs coupled with inspiration as more customers shift from eating out to cooking at home to help manage their household budget.

“We know value and availability will be important to our customers over the months ahead and we are well placed to respond to this with our extensive own brand portfolio, our leading eCommerce platforms and the strength of the infrastructure and capability that sits within our supply chain,” said Ms Weckert.