Highlights

  • Coles Group (ASX:COL) reported FY26 group sales Revenue of $45.6 billion and Statutory NPAT of $1.09 billion.
  • Supermarkets eCommerce sales increased 26.4%, highlighting continued growth in digital grocery shopping.
  • Coles completed a substantial program of new stores and renewals during FY26 while continuing to invest in automation and operational efficiency.
  • Coles shares closed at AUD 23.36 on 8 September 2026, down 0.89% for the session and 1.68% over the past year.

Coles Group (ASX:COL) remains one of Australia's largest consumer-facing businesses, with its scale in supermarkets giving it exposure to everyday household spending while investments in digital retail, automation and store renewal increasingly shape its growth profile.

The company's latest FY26 results provide a clearer picture of how those investments are translating into financial performance. Coles reported group sales revenue of $45.6 billion, group EBIT excluding significant items of $2.3 billion and net profit after tax of $1.09 billion. Supermarkets eCommerce sales expanded 26.4% during the year, reinforcing the growing role of digital channels within the group's retail model.

Despite the latest operating performance, Coles shares finished at AUD 23.36 on 8 September 2026, down 0.89% on the day. The stock was also 1.68% lower over the past year, based on the market data provided. Coles' own investor information confirmed the AUD 23.36 closing price on 8 September.

Latest FY26 Update

Coles' FY26 result showed that the Business continued to grow its sales base while maintaining sizeable Earnings and cash-generating capacity.

For the year, group sales revenue reached $45.6 billion, while group EBIT excluding significant items came in at $2.3 billion. Statutory NPAT was $1.09 billion.

The result followed encouraging momentum earlier in the year. During the third quarter, group sales revenue increased 3.1% to $10.70 billion. Supermarkets sales rose 4.0%, with comparable growth of 3.6%, while supermarket sales excluding tobacco increased 5.7%.

These figures indicate that Coles continued to benefit from grocery Demand even as different parts of its portfolio produced mixed outcomes.

Supermarkets Remain Central

Supermarkets remain the foundation of Coles' business and its most important earnings engine.

During the first half of FY26, reported group sales revenue reached $23.62 billion, while group EBIT excluding significant items increased 10.2% to $1.23 billion. Supermarkets reported EBIT growth of 14.6%, supported by sales momentum, automation benefits and operating efficiencies.

The supermarket division also continued to benefit from improvements in customer availability, store presentation and online shopping.

That execution matters because Australian food retail is highly competitive. Coles must balance value for customers with labour expenses, supply-chain costs and ongoing Investment in stores and technology.

Its scale provides purchasing and distribution advantages, but maintaining market position depends on consistently delivering value, availability and convenience.

Digital Grocery Continues to Expand

One of the more notable FY26 trends was the continued expansion of eCommerce.

Supermarkets eCommerce sales increased 26.4% during FY26, extending the momentum seen earlier in the year. In the third quarter alone, eCommerce sales increased 24.8%, while online penetration reached 13.6%.

This matters because digital grocery is becoming increasingly integrated with the traditional supermarket model rather than operating as a separate channel.

For Coles, higher digital engagement creates opportunities to deepen customer relationships and improve convenience, but online grocery also requires efficient fulfilment and distribution to generate attractive economics.

Automation therefore remains closely linked to the group's digital strategy.

Store and Supply-Chain Investment

Coles continued investing in its physical network during FY26, reporting 241 new stores and renewals across the group. It also maintained a portfolio of approximately 5,600 Exclusive to Coles products.

Store renewal remains important even as online sales expand.

Physical stores continue to represent the primary customer touchpoint for most grocery purchases and can also support click-and-collect and other omnichannel services.

At the same time, Coles has been investing in automation across its Supply chain. The company highlighted tangible benefits from automation and operational-efficiency programs during its half-year result.

If these investments continue to improve productivity, they could help offset some of the labour, logistics and operating-cost pressures inherent in large-scale food retail.

What Does the Share Price Tell Investors?

Coles closed at AUD 23.36 on 8 September 2026, down 0.89% for the day. The company's investor page independently recorded the AUD 23.36 close at 4:00 PM on 8 September.

The stock is also down 1.68% over the past year, based on the supplied market data.

That relatively modest annual movement contrasts with the scale of the company's operating developments, including higher digital sales, supermarket momentum and continued investment in automation.

Short-term share movements can reflect a wide range of factors beyond company earnings, including expectations already embedded in the stock, movements in defensive consumer names and broader market conditions.

The more meaningful question for longer-term observers is whether Coles can keep expanding earnings while maintaining competitive pricing and funding investment.

Growth Drivers

Coles has several identifiable areas that could influence performance through FY27.

Digital grocery remains one of the clearest. Sustained eCommerce growth could increase engagement across Coles' customer base, particularly if fulfilment Economics improve alongside increased scale.

Automation represents another potential driver. Distribution and fulfilment technology can help reduce manual handling, improve product availability and create operating efficiencies.

Store renewal also remains relevant. Modernising the physical network can improve customer experience while allowing Coles to integrate digital and physical shopping more effectively.

Private-label and Exclusive to Coles products provide another avenue for differentiation, particularly as consumers remain focused on grocery value.

Risks Investors Should Consider

Competitive pressure remains one of the main considerations for Coles.

Australian supermarkets operate in an environment where consumers closely monitor pricing, meaning efforts to protect margins must be balanced against maintaining a competitive customer proposition.

Cost Inflation is another factor. Labour, logistics, electricity and supplier costs can influence supermarket profitability even when sales remain relatively steady.

Coles must also execute effectively on major technology and automation investments. These projects can improve productivity over time, but implementation problems or lower-than-expected benefits could affect returns.

The Liquor business also presents a different operating environment from supermarkets and can face softer discretionary demand.

What to Watch Next

The next scheduled operational checkpoint is Coles' Q1 FY27 Sales Results on 30 October 2026, followed by the company's AGM on 6 November 2026.

Investors are likely to focus particularly on supermarket comparable sales, eCommerce growth, customer volumes and the contribution from automation initiatives.

Continued earnings progression will also depend on Coles balancing investment with cost control.

With FY26 group sales revenue at $45.6 billion and NPAT at $1.09 billion, the company enters FY27 from a sizeable operating base.

The question now is whether digital growth, store investment and supply-chain efficiencies can translate that scale into sustained earnings improvement.