Coles Group delivered above market sales growth in its core supermarkets business during the third quarter, with total group revenue reaching $10.7 billion, up 3.1% year-on-year. The supermarkets segment grew sales by 4.0% to $9.8 billion, with comparable sales growth of 3.6% and an even stronger 5.7% expansion when excluding tobacco products. This sustained momentum in the key earnings driver demonstrates continued market share gains against competitors, a critical metric for investors assessing the retailer’s competitive position in an increasingly challenging consumer environment.
The growth was volume-led, underpinned by Coles’ continued focus on value through an expanded everyday value range and targeted promotional activity. eCommerce delivered exceptional expansion, with sales climbing 24.8% year-on-year and penetration increasing to 13.6% of supermarkets turnover. This represents a structural shift in consumer shopping patterns and provides Coles with opportunities to improve margins through more efficient fulfillment and increased private label penetration. Loyalty programs also strengthened considerably, with Flybuys active members rising 5% to 10.3 million and Coles Plus subscriptions surging 75%, indicating successful wallet share expansion among engaged customers.
Premium product categories and Coles’ exclusive brands demonstrated particular strength, with exclusive to Coles sales increasing 7.3% and the premium Coles Finest tier expanding revenue by 8.2% year-on-year. The company launched 142 new products during the quarter and refreshed key ranges, supporting this mix improvement. For investors, this shift toward premium and exclusive offerings is significant as these categories typically command stronger margins than commodity lines. Sales density per square metre remained steady at $20,239 on a moving annual total basis, demonstrating consistent store productivity.
The liquor segment recorded a 4.3% comparable sales decline, a headwind that bears monitoring. Looking ahead, Coles’ ability to sustain above market growth in an environment of moderating consumer spending while improving eCommerce profitability will be crucial. The company must balance its value positioning with margin protection as it pursues premium category expansion. This announcement has been classified as price sensitive and material by the Australian Securities Exchange.
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About Coles Group Limited (ASX: COL)
Coles Group operates one of Australia’s two major supermarket chains along with liquor retail and convenience store businesses. It serves millions of Australian customers weekly across its store network.
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