Thursday, May 1, 2025

Coles sales driven by value and improved operations

Coles has released its 2025 third-quarter results, with Group sales revenue increasing $3.4% to $10.4 billion.

Coles Group CEO Leah Weckert says the retailer is pleased to have delivered another solid quarter of sales growth.

“These results reflect the continued investments we are making in value and in improving the shopping experience for our customers both in store and online,” she says.

“This period also marked our first quarter where we were able to fully operate both our automated distribution centres and our customer fulfilment centres, underpinning improved efficiency and delivering enhanced product availability.

“At the same time, we faced a number of major weather events, including Cyclone Alfred and severe flooding in Far North Queensland.

“Despite the difficult conditions, our team members came together to help ensure that our local communities had access to essential food and grocery supplies throughout these events, as well as dedicating significant time and resources to assist with recovery efforts.”

Supermarkets

Supermarkets sales revenue was $9.4 billion for the quarter. This was an increase of 3.7% compared to the prior corresponding period. Excluding tobacco, sales revenue increased by 4.7%.

According to Coles, customers remained value conscious throughout the period with solid volume growth supported by the retailer’s value offering, including summer value campaign and ongoing promotional activity, successful execution across trade events including Australia Day and Valentine’s Day, and its Harry Potter collectibles campaign.

E-commerce sales increased by 25.7% to $1.1 billion with penetration increasing to 11.3%.

Coles says e-commerce sales growth was strong across all shopping missions (Next Day, Same Day and Rapid) underpinned by continued enhancements to app and website functionality, expanded reach and successful trade plans, including the ‘App Mega Sale’ event and Back to School offers.

Exclusive to Coles sales revenue increased by 4.5% to $3.2 billion with Coles Finest remaining the strongest performing tier, with revenue growth of 13.7%.

Total supermarkets price inflation was 1.5% (1.4% in 2Q25) with inflation excluding tobacco of 1.1% (1% in 2Q25).

Two new supermarkets were opened, two were closed and eight were renewed during the quarter.

Liquor

Liquor sales revenue was $813 million for the quarter. This was an increase of 3.4% compared to the prior corresponding period.

“While the liquor market continues to be impacted by subdued discretionary spending, sales revenue was underpinned by strong execution across events, such as Australia Day, and a reset of our value offer across all stores to deliver a more compelling offer for customers,” says Coles.

“This included the move to consistent base and promotional pricing across all three retail banners and the nationwide rollout of Price Match Promise.”

E-commerce sales revenue increased by 18.2% with penetration of 6.5% (7.6% including liquor sold through Coles Online).

Four new stores were opened, four stores were closed and 10 store renewals were completed during the quarter.

In March, the retailer announced that it would proceed with the national rollout of its ‘Simply Liquorland’ program. This will see all Coles Liquor stores unified under three banners: Liquorland, Liquorland Cellars and Liquorland Warehouse.

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