Image source: Shutterstock

Highlights

  • Coles reports 3.4% revenue growth to AU$10.38 billion, slightly below market expectations.

  • eCommerce sales soar 25.7%, now accounting for over 11% of supermarket revenue.

  • Liquor division posts modest growth; rebranding strategy underway across retail network.

Shares of Coles Group Ltd (ASX:COL) edged lower on Wednesday morning following the release of its third-quarter results. The stock declined 0.5% to AU$21.30 in early trade, as investors digested the company’s latest trading performance, which showed modest revenue growth but fell short of analysts' expectations.

For the quarter ending 31 March 2025, Coles reported total group sales revenue of AU$10.38 billion. This represented a 3.4% increase compared to the same period last year, yet missed the consensus forecast of AU$10.5 billion. Despite the miss, Coles highlighted several encouraging trends, particularly in its core supermarket and digital channels.

The supermarket division remained the group's main revenue driver, generating AU$9.4 billion — a 3.7% year-on-year increase. When adjusted to exclude tobacco sales, which have been declining, underlying growth stood at a more favourable 4.7%. The company attributed this performance to sustained customer focus on value, boosted by promotional campaigns tied to key calendar events like Australia Day, Valentine’s Day, and the widely received Harry Potter collectibles initiative.

Online shopping continued to deliver notable gains. Coles’ eCommerce supermarket sales surged 25.7% during the quarter, surpassing AU$1.1 billion and making up 11.3% of total supermarket sales. More than 1.5 million orders were fulfilled through its Customer Fulfilment Centres (CFCs), with customer satisfaction metrics improving significantly.

Coles also opened two new supermarkets and completed eight store refurbishments in the quarter, continuing its investment in expanding and upgrading its retail network.

The company’s Liquor division contributed AU$813 million in sales revenue, marking a 3.4% increase. Although comparable sales were flat after adjusting for the early Easter trading period.

eCommerce within the Liquor segment also saw growth, with online sales up 18.2%. Four new liquor stores were opened, and 10 underwent renewals. In a bid to streamline branding and increase consumer engagement, Coles announced a national rollout of its “Simply Liquorland” program. The initiative will see the rebranding of Vintage Cellars and First Choice outlets under the Liquorland name to unify its retail identity and build broader brand recognition.