Coles Group Records $10.7 Billion in Third Quarter Sales Amid Rising Operational Costs

Coles Group Limited reported total group sales revenue of $10,703 million for the third quarter of fiscal year 2026, representing a 3.1% increase compared to the same period in the previous year. The results for the 12 weeks ending March 29, 2026, highlight a period of steady growth in the core supermarket business and a significant expansion in digital sales, even as the retailer navigates a complex economic environment marked by rising operational costs and shifting consumer sentiment.

The Supermarkets division remained the primary driver of the group's performance, recording sales revenue of $9,781 million, an increase of 4.0%. Comparable sales within the supermarket segment grew by 3.6%. When excluding tobacco products, the growth in supermarket sales was more pronounced at 5.7%. This performance was supported by a continued focus on value and a shift in consumer behaviour towards in-home consumption as cost-of-living pressures persist across Australia.

Digital Growth and Supermarket Trends

A standout feature of the third-quarter results was the robust performance of the eCommerce segment. Sales through digital channels surged by 24.8% to reach $1,327 million. This growth has seen eCommerce penetration reach 13.6% of total supermarket sales, reflecting the ongoing digital transformation of the retail landscape and the increasing consumer preference for online shopping and delivery services, including partnerships with platforms such as Uber Eats.

While sales volumes increased, the rate of price inflation within the supermarkets moderated significantly. Supermarket price inflation, excluding tobacco, was recorded at 0.8% for the third quarter, a notable decrease from the 1.7% reported in the second quarter of fiscal year 2026. This moderation was largely attributed to deflation in the fresh produce category, providing some relief to consumers even as other household expenses remain elevated.

Despite the positive momentum in the core grocery business, Coles' supermarket sales growth of 4.0% trailed behind its primary competitor. Woolworths Group reported Australian food sales growth of 5.9% for the same period, indicating an intense competitive environment where market share remains a key battleground for the major retailers.

Challenges in the Liquor Segment and Operational Costs

The Liquor segment faced a more challenging environment during the 12-week period. Sales revenue in this division declined by 3.9% to $781 million, with comparable sales falling by 4.3%. This downturn is attributed to weaker consumer sentiment and a reduction in discretionary spending as households prioritise essential items. The 'Other' segment, which includes the Product Supply Agreement with Viva Energy Group Ltd, contributed in revenue. This agreement is currently scheduled to conclude by the end of .