Coles Group Q3 Revenue Rises on Strong Supermarket and Online Sales

Coles Group Ltd (OTC:CLEGF), Australia’s second-largest grocer, reported a 3.4% year-over-year increase in third-quarter revenue, reaching A$10.38 billion, driven by strong supermarket and e-commerce performance. Shares rose 0.8% following the announcement, marking the highest level since April 23.

Supermarket sales rose 3.7% to A$9.4 billion, with a 4.7% increase when excluding tobacco. The growth was attributed to value-driven consumer behavior amid cost-of-living pressures, supported by targeted campaigns such as the Summer value initiative and holiday-related trade events. Online sales surged 25.7% to A$1.1 billion, making up 11.3% of supermarket revenue, thanks to app and website upgrades that expanded delivery capabilities.

Australia’s broader retail environment showed modest recovery, with household spending rising for a fifth straight month in February, helped by easing inflation and the potential for interest rate cuts. However, overall growth remained tempered.

Inflation in Coles supermarkets was limited to 1.5%, with fresh meat and produce costs rising, while health and home categories saw deflation. Severe weather events like Queensland floods and Cyclone Alfred disrupted fresh produce supply, causing localized price spikes.

Liquor sales also grew 3.4% to A$813 million, boosted by the opening of 31 new stores over the past year.

Coles’ performance highlights how strategic pricing, improved digital platforms, and customer-centric promotions are supporting growth amid challenging economic conditions. The continued shift toward online grocery shopping and value-seeking behavior among Australian consumers is expected to remain a key driver for the company.

With cost-conscious shoppers responding well to promotional efforts and digital enhancements, Coles is positioned to sustain momentum in the competitive retail landscape.