Coles has released its 2027 first-quarter results, with Group sales revenue increasing 2.2% to $11.21 billion.

Supermarkets sales revenue increased by 3.6% to $10.3 billion, a two-year growth rate of 10.7% excluding tobacco.

E-commerce sales increased by 22.9% to $1.6 billion, while penetration reached 15.7%.

Exclusive to Coles sales increased 4.3%, ahead of overall supermarkets sales growth, with more than 80 new Own Brand products launched. Coles Finest remained the strongest-performing tier, with sales increasing 13.3%.

“During the quarter we were encouraged by strong e-commerce growth, continued gains in Exclusive to Coles and progress across our capital investment program,” says Coles Group Managing Director and CEO Leah Weckert.  

“While supermarkets sales growth remained in line with the prior quarter, we know household budgets are under pressure, and customers are shopping more deliberately across retailers and channels.

“There’s more to do to ensure we’re front of mind for customers in this environment, and we’re taking action to sharpen our offer over the coming months.”

Flybuys swipe rates increased 110 bps and points redemptions increased 16% during the quarter. Coles says this strong engagement was supported by its ‘Shop. Scan. WIN!’, Curtis Stone glass container and entertaining campaigns, and the introduction of Pay with Points.  

During the quarter, eight new supermarkets were opened and seven renewals were completed.

Liquor

Liquor sales revenue decreased by 1.3% to $831 million.

According to Coles, customer preferences continued to shift towards smaller pack sizes and ready-to-drink (RTD) products, with growth in demand for flavour-led innovation in RTDs and spritz. Sparkling wine also performed well supported by targeted offers.

E-commerce sales, excluding liquor sold through coles.com.au, were $61 million as Coles cycled deeper promotional activity associated with last year’s consolidation of its three websites under the Liquorland banner. E-commerce sales sold through coles.com.au increased by almost 20%.

Coles says it continued to make good progress on its integrated food and drink proposition. The retailer’s Father’s Day Wine & Steak offer delivered double-digit growth in combined steak and red wine sales, while customer NPS reached an all-time high.

During the quarter, nine new stores were opened, three closed, and four renewals were completed.

Outlook

Cost-of-living pressures and elevated competitor promotional activity have continued to influence customer behaviour in the first four weeks of the second quarter, according to Coles.

Supermarkets sales have remained resilient, although growth has moderated compared to the first quarter.

The retailer says it’s taking “deliberate actions” to strengthen momentum by enhancing its customer proposition through targeted investments in value, including the recent relaunch of its Every Day Price program. As it heads into the important Christmas trading period, Coles has launched its largest-ever Exclusive to Coles Christmas range.

Continued geopolitical uncertainty has also resulted in an increase in fuel prices over the last two months. Coles is expecting to incur additional fuel-related costs in the first half compared to the prior corresponding period.

In liquor, the sales revenue decline in the early part of the second quarter was broadly in line with the first quarter. The retailer is encouraged by momentum in its convenience formats and the early customer response to its integrated food and drink offer, while remaining focused on improving overall performance.

“We’re investing more in lower prices and value for customers, while continuing to improve the customer experience,” says Ms Weckert. “I’m confident that our teams’ focus on providing, quality, choice and inspiration for customers will deliver improving sales momentum through the festive season.”