Coles Group sales revenue increased by 2.5% in 1H26, with growth in Supermarkets sales revenue of 3.6% and a decline in Liquor sales revenue of 3.2%. Adjusted for the competitor industrial action in the prior corresponding period and excluding tobacco, Group sales revenue increased by 4.9%.
“We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024,” said Coles Group CEO Leah Weckert.
“The momentum in our business has enabled us to continue offering a compelling value proposition to customers, particularly over the festive season, while also achieving further improvements in availability and customer experience metrics.”
Value and execution drive supermarket sales
Coles’ Supermarkets recorded sales revenue of $21.4 billion. On a 2 year stack, its sales revenue excluding tobacco increased by 11.1%.
The retailer continued to make investments in value during the half, particularly over the festive season. It lowered the price of hundreds of products as part of its Winter and Spring value campaigns and increased the number of products within its everyday value range. Coles also lowered the price of several key fresh produce lines to $1 and offered more than 1000 half price specials in the lead up to Christmas.
‘Exclusive to Coles’ sales increased by 5.7% during the period, with a particularly strong performance across Christmas and seasonal lines, as well as Coles Finest range, which continued to outperform the broader portfolio.
On a category basis, Coles’ frozen and fresh convenience ranges and breakfast lines delivered strong growth. More than 500 products were introduced during the half and the portfolio was recognised at the 2026 Product of the Year awards with 17 Exclusive to Coles products recognised for their quality, value and innovation.
Coles reports customer satisfaction scores increased across all key metrics, including availability, quality, range, store look and feel and price, reflecting strong execution across the half.
During the period, Coles completed 35 store renewals, opened six new stores and closed one store, taking the total network to 865 supermarkets.
Investing in efficiency as online grows
Coles’ eCommerce sales increased by 27.0% (49.6% on a 2 year stack) with penetration of 13.1%. Sales were strong across the half, including over the Black Friday and Christmas trading periods.
Coles also announced enhancements to its immediacy offer during the half, with an expanded partnership with Uber Eats allowing customers to access up to 17,000 products directly through the Uber Eats app.
Customer fulfillment centre (CFC) volumes continued to increase with sales growth outpacing total eCommerce growth and Coles’ same day delivery offer was expanded to include CFC fulfilled orders from both the Melbourne and Sydney CFCs.
On grid robotic pick arms and auto frame loading were installed during the period and a number of last mile technology improvements were also introduced, further optimising the efficiency of these facilities.
“It is clear that our focus on executing against our strategic priorities and the successful delivery of our major ADC and CFC transformation investments are delivering benefits for both our customers and our shareholders,” said Ms Weckert.
“As we look ahead we are well positioned, with a strong balance sheet and cash flow generation, to continue to invest in areas that will strengthen and expand our core customer proposition and deliver value for shareholders.”
Outlook
In the first seven weeks of the third quarter, Supermarkets sales revenue increased by 3.7% (5.3% ex-tobacco) as we continued to cycle impacts from the competitor industrial action last year.
Coles says customers remain value oriented and are responding well to its expanded range of everyday value products and loyalty offers.
“We know value remains front of mind for our customers and we are well placed to deliver great value through our Exclusive to Coles range, as well as our seasonal value campaigns, weekly promotions and loyalty offers,” Ms Weckert, said.
Coles expects the market to remain highly competitive and claims to be focused on ensuring it delivers a seamless omnichannel experience with the “right range, quality, value and innovation to drive continued sales momentum at the same time as consistently delivering more efficient and streamlined operations”.
