Coles Group’s revenue rose 3.4 per cent year over year to $10.38 billion in the fiscal third quarter, driven by value-conscious consumer spending and continued growth in e-commerce.
This growth came despite several severe weather events, including February flooding in Far North Queensland and Cyclone Alfred’s impact on Southeast Queensland and Northern New South Wales in March.
Supermarket sales increased 3.7 per cent to $9.40 billion, supported by the launch of 138 new Exclusive to Coles products, including 48 additions to the ‘Coles Simply’ value range.
E-commerce sales surged 25.7 per cent to $1.1 billion, with penetration rising to 11.3 per cent, thanks to the strong performance across all shopping missions (Next Day, Same Day, and Rapid), and enhancements to the app and website, expanded reach, and successful promotional events like the ‘App Mega Sale’ and Back to School offers.
During the period, Coles opened two new supermarkets, closed two existing locations, and completed eight store renewals.
Liquor sales climbed 3.4 per cent to $813 million, benefitting from 31 net new stores added to the portfolio over the last 12 months, including the acquisition of 20 stores in Tasmania in June 2024.
Coles opened four new stores, closed four, and completed 10 store renewals during the third quarter. The company also completed the renewal of all acquired Tasmanian stores following their conversion to the Liquorland banner in June 2024.
Other revenue, relating to the company’s product supply agreement with Viva Energy Group, declined 9.3 per cent to $165 million.
The agreement is expected to conclude in April 2026.
Leah Weckert, CEO of Coles Group, said these results reflect the continued investments they are making in value and in improving the shopping experience for customers both in store and online.
“This period also marked our first quarter where we were able to fully operate both our Automated Distribution Centres (ADCs) and our Customer Fulfilment Centres, underpinning improved efficiency and delivering enhanced product availability.”
This article originally appeared in RetailBiz.