From Performance to Prospects: The Road Ahead for Coles (ASX:COL), Woolworths (ASX:WOW) and Wesfarmers (ASX:WES)

Sonal Goyal

22 October 2026 12:29 PM AEDT

From Performance to Prospects: The Road Ahead for Coles (ASX:COL), Woolworths (ASX:WOW) and Wesfarmers (ASX:WES)

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key highlights

Coles Group (ASX:COL) said a new operating model is expected to deliver benefits from FY27, rising to an annualised run rate of more than $100 million by the end of FY29.
Woolworths Group (ASX:WOW) said it expects the challenging economic environment to continue with household budgets under pressure.
Wesfarmers (ASX:WES) reported a lithium refinery ramp-up affected by odour issues, with mitigation measures begun late in FY26.

Supermarkets and diversified retailers reported FY26 results at a time of cost-of-living pressure, and their forward commentary shows how they plan to protect value for customers while improving efficiency. This article reviews the outlook statements of Coles Group Limited (ASX:COL), Woolworths Group Limited (ASX:WOW) and Wesfarmers Limited (ASX:WES).

The three companies sell groceries, general merchandise, home improvement and health products, and Wesfarmers also owns chemicals, energy and lithium businesses. The theme is how each describes the period ahead.

Coles Group Limited (ASX:COL)

Coles reported FY26 sales revenue of $45,580 million, up 2.8%, Group NPAT of $1,090 million, up 1.0%, and total dividends of 78 cents per share. Excluding significant items, NPAT rose 13.7%. Supermarkets eCommerce sales rose 26.4% to $5.6 billion. The company said it enters FY27 with good momentum and a sound balance sheet, although it also said the financial result was below its expectations.

Its forward plan includes a new operating model, with benefits expected to begin in FY27 and increase to an annualised run rate of more than $100 million by the end of FY29. In FY27 it plans about 20 new co-located stores to open and about 30 stores to close as part of its store program.

Woolworths Group Limited (ASX:WOW)

Woolworths reported F26 Group sales of $71.5 billion, up 3.6%, Group EBIT before significant items of $3,105 million, up 12.7%, and a 52 cent final dividend. Group eCommerce sales rose 15.9% to $10.6 billion.

Looking ahead, the company said it expects the challenging economic environment to continue, with household budgets remaining under pressure. Its release refers to a new merchandising and service model that is being rolled out and that it plans to extend across the rest of the network in F27.

Wesfarmers Limited (ASX:WES)

Wesfarmers reported FY26 revenue of $47,274 million, EBIT of $4,493 million and NPAT of $2,874 million, with a full-year dividend of 222 cents per share. The release named Bunnings, Kmart Group and WesCEF as the largest earnings contributors.

Several items in the release point to the period ahead: spodumene concentrate production at its lithium business was 209kt, above guidance, but the lithium refinery’s ramp-up was affected by intermittent odour issues, and mitigation measures began late in FY26. Officeworks earnings reflected transformation costs, and Wesfarmers Health delivered higher earnings.

General risks to keep in mind

Retailers are exposed to household spending, food and cost inflation, competition on price, labour costs and regulatory scrutiny. Large store and supply chain programs can take years to deliver and may cost more or deliver less than planned. Diversified groups such as Wesfarmers are also exposed to commodity prices and to the performance of industrial projects such as lithium processing. Weather and supply disruption can affect product availability.

What investors might be watching

Coles’ first-year benefits from its new operating model and its FY27 store openings and closures.
Woolworths’ trading updates on household spending and the rollout of its new model across the network.
Wesfarmers’ lithium refinery ramp-up and Officeworks’ transformation progress.
Growth in eCommerce and on-demand channels at each retailer.
Price investment and its effect on margins.

The next stage for the three retailers

Coles has quantified the benefit of a new operating model, Woolworths has said it expects continued pressure on household budgets, and Wesfarmers has flagged specific project milestones. The next trading updates will give an early read on each plan.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.