Coles sales rise 2.2% to A$11.209 billion in first quarter
Key Facts
Coles Group reported revenue of A$11.209 billion in the first quarter of its 2027 financial year, up 2.2% from the corresponding period, according to the company's sales update for the 13 weeks ended September 27, 2026. The result was driven by supermarket revenue growth of 3.6% to A$10.320 billion. But comparable sales growth in the business slowed to 2.7%, from 4.6% in the first quarter of the previous financial year. The figures place the update in the context of revenue growth alongside a slower pace of comparable sales. The company said supermarket sales remained resilient during the first four weeks of the second quarter, but growth eased compared with the first quarter.
Coles attributed the slowdown at the start of the second quarter to ongoing cost-of-living pressures and increased promotional activity by competitors, without attributing sales movements to any single factor. Chief Executive Leah Weckert said, "Household budgets are under pressure, and customers are shopping more judiciously across retailers and channels." The remarks come as Australia's annual inflation rate rose to 4.3% in the 12 months through September, from 4.0% through August, according to the Australian Bureau of Statistics. Food and non-alcoholic beverage prices rose 3.2% year over year through September. On competition, Woolworths' Australian food sales rose 6.9% to A$14.8 billion in the first quarter it reported in October 2026. Coles and Woolworths together account for about 67% of national supermarket retail sales, according to the Australian Competition and Consumer Commission's interim report.
Against these pressures, Coles expects supermarket EBIT in the first half to be at the level of the corresponding period a year earlier. The company pointed to additional fuel costs in the first half, attributing them to higher fuel prices over the previous two months amid geopolitical uncertainty. It also said investment in value was part of the context underpinning its earnings outlook. The guidance means the company expects the business's earnings to remain flat in the first half as it manages fuel costs and promotional pressure from competitors. The company did not specify a figure for those additional costs or its investment in value in the published information.
While comparable sales growth in stores eased, supermarket e-commerce grew faster in the first quarter. Online sales rose 22.9% to A$1.623 billion, according to company data reported by Business News Australia. E-commerce's share of supermarket sales climbed to 15.7%, compared with 13.3% in the corresponding period of the previous financial year. The figures show the online sales channel expanding alongside a slowdown in overall supermarket comparable sales growth. The results remain part of the first-quarter picture, while the company described sales in the first four weeks of the second quarter as resilient despite moderating growth.
Coles shares fell during the October 30 session, trading at A$21.70 at 3:16 p.m., down 7.5% from the previous close, after opening at A$21.83, according to the company's investor page. The move came on the day it announced its sales update and first-half supermarket earnings outlook. The company had reported group revenue growth in the first quarter, while supermarket comparable sales showed a slowdown from the corresponding period. Coles scheduled its 2026 annual general meeting for November 6. The meeting comes less than a week after the update, while the company's published outlook for first-half supermarket earnings remains at the level of the corresponding period a year earlier.