Coles Group (ASX:COL): What Do FY26 Results Reveal About Its Retail Strategy?

Aditi Sarkar

26 October 2026 11:31 PM AEDT

Coles Group (ASX:COL): What Do FY26 Results Reveal About Its Retail Strategy?

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Highlights

Coles Group (ASX:COL) reported FY26 group sales revenue of AUD 45.6bn.
FY26 group EBIT excluding significant items was AUD 2.3bn, with NPAT of AUD 1.1bn.
Supermarkets eCommerce sales grew 26.4% in FY26.
The company scheduled its 1QFY27 sales results for 30 October 2026.

Coles Group Limited operates Australian supermarket, online grocery and liquor retail businesses, supported by distribution, supply-chain and digital platforms. Its FY26 results outlined sales growth, earnings performance and continued investment in store and online operations. Shares in Coles Group (ASX:COL) closed at AUD 24.18 on 26 October 2026, down approximately 1.5% for the trading session. The company is approaching its next quarterly sales release following a year in which supermarkets eCommerce sales increased and group earnings reflected the performance of its retail divisions.

Company Business

Coles Group (ASX:COL) serves Australian households through Coles Supermarkets, Coles Online and Liquorland, alongside related services and customer programs. Its supermarket operations include fresh food, packaged groceries and household essentials. Online services provide home delivery and collection options, while the liquor division operates consumer-facing stores and associated distribution arrangements.

The business relies on a national network of stores, distribution centres, suppliers and logistics infrastructure. Store renewals, automated supply-chain facilities and digital ordering systems form part of its operating model. Its exposure is principally to Australian consumer spending, food retail competition, supplier pricing and the costs of staffing, energy and freight.

Recent Development

The company’s FY26 corporate reporting recorded 241 new stores and renewals, reflecting continuing investment across its retail network. Coles Group (ASX:COL) also reported supermarkets eCommerce sales growth of 26.4%, illustrating the increasing role of digital channels in its grocery operations. In October 2026, the company published information on its seasonal own-brand product range, while retaining its focus on food retail and customer availability.

The next scheduled financial disclosure is the 1QFY27 sales update on 30 October 2026, followed by the 2026 annual general meeting in November. These events will provide further information on sales activity after the FY26 reporting period and management’s operating priorities. No 1QFY27 sales outcome is assumed ahead of that scheduled release.

Financial Performance and Sector Context

Coles Group (ASX:COL) reported FY26 group sales revenue of AUD 45.6bn, group earnings before interest and tax (EBIT) of AUD 2.3bn excluding significant items, and net profit after tax (NPAT) of AUD 1.1bn. Its official FY26 reporting also recorded supermarkets eCommerce sales growth of 26.4%. These figures reflect the scale of the business, while the distinction between reported earnings and EBIT excluding significant items remains relevant when interpreting profitability.

The 1H26 report showed group sales revenue of AUD 23.618bn, up 2.5% year on year. Group EBIT excluding significant items was AUD 1.231bn, up 10.2%, while NPAT excluding significant items was AUD 676mn, up 12.5%. Supermarkets recorded first-half sales revenue of AUD 21.365bn, compared with AUD 20.629bn in the prior corresponding period; liquor sales revenue was AUD 1.939bn, down from AUD 2.004bn.

For Australian food retailers, cost-of-living pressures, competition on shelf prices, wage and logistics expenses, and changes in purchasing patterns affect sales and margins. Online fulfilment adds another cost and service consideration. Performance across supermarkets and liquor can differ because product mix, consumer demand and promotional activity are not identical.

Risks to Consider

Coles Group (ASX:COL) is exposed to food-price competition, labour and distribution costs, regulatory compliance and the execution of store and technology projects. Supply interruptions can influence product availability and operating expenses. The liquor business faces separate trading conditions, while digital expansion requires investment in fulfilment capacity and service reliability. Changes in consumer purchasing patterns can also affect sales mix and margins.

What to Watch Next

The 1QFY27 sales results scheduled for 30 October 2026 will provide the next company-reported measure of trading conditions. Subsequent disclosures may address comparable supermarket sales, liquor performance, online penetration, costs and capital expenditure. For Coles Group (ASX:COL), the interaction between pricing, sales volumes and operating expenses will remain central to interpreting results, alongside progress on distribution and store investment.

Key Insights

Coles Group’s FY26 reporting shows group sales revenue of AUD 45.6bn, EBIT excluding significant items of AUD 2.3bn and NPAT of AUD 1.1bn. Digital grocery sales and the retail network remain important operating areas. The next quarterly report will provide a more recent view of supermarket and liquor sales, while supply-chain execution, pricing and cost movements continue to influence financial performance.

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