Coles Navigates Weather Disruptions While Driving Digital and Value Growth

Solid Sales Growth Amid Operational Advances

Coles Group Limited delivered a robust third quarter performance for FY25, with total group sales revenue climbing 3.4% to $10.033 billion. The supermarket segment led the charge, posting a 3.7% increase in sales revenue to $9.4 billion, underpinned by a strategic focus on value and enhanced customer experience both in-store and online.

Key to this growth was the 25.7% surge in eCommerce sales, which reached $1.1 billion and now represent 11.3% of supermarket sales. This expansion was supported by the full operation of Coles’ Automated Distribution Centres (ADCs) and Customer Fulfilment Centres (CFCs), which have improved product availability and delivery efficiency. Since launch, over 1.5 million orders have been fulfilled through these centres, with perfect order rates significantly outperforming national home delivery benchmarks.

Liquor Segment Navigates Market Challenges

The liquor division recorded a 3.4% increase in sales revenue to $813 million, buoyed by space growth from 31 net new stores, including 20 acquired in Tasmania last year. However, adjusted comparable sales were flat, reflecting subdued discretionary spending and the timing impact of Easter. Coles is advancing its national rollout of the 'Simply Liquorland' banner simplification program, aiming to unify its retail brands and enhance customer engagement, with expected program costs of around $7 million in H2 FY25.

Value Initiatives and Community Support

Coles continued to emphasize value through campaigns like the Summer value promotion and the Price Match Promise in liquor stores. The introduction of 'Value Bays' in over 800 stores and the launch of 138 new exclusive products, including additions to the 'Coles Simply' range, further reinforced this strategy. Despite facing severe weather events such as Cyclone Alfred and flooding in Far North Queensland, Coles maintained supply continuity and contributed $100,000 to Foodbank for relief efforts.

Charitable initiatives also remained a priority, with over $1.3 million raised for Hospitals United for Sick Kids and nearly $1 million for Fitted for Work, supporting vulnerable communities.

Outlook and Strategic Focus

Looking ahead, Coles anticipates continued sales growth in the fourth quarter, supported by strong volume momentum and positive customer response to seasonal offerings like Easter products. The completion of the second ADC in New South Wales and ongoing enhancements to the CFCs position the group well to deliver improved online experiences. The liquor segment’s banner simplification is expected to drive further brand cohesion and operational efficiencies.

CEO Leah Weckert highlighted the company’s commitment to affordable quality and customer satisfaction, emphasizing the importance of operational excellence and community engagement as pillars for sustained growth.