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Highlights
- Strong quarterly sales growth from Coles
- Online segment posts robust double-digit gains
- Automation rollout enhances operational efficiency
The retail spotlight is firmly on Coles Group (ASX:COL) following the release of its third-quarter update for FY25. The company reported continued growth across key segments, driven by its focus on customer experience, digital expansion, and operational enhancements through automation.
Quarterly Performance Snapshot
For the 12 weeks ended 30 March 2025, Coles achieved total sales of $10.4 billion, marking a 3.4% increase compared to the same period last year. Supermarkets remained the largest contributor with $9.4 billion in sales, up 3.7%, while liquor division sales rose 3.4% to $813 million. Sales classified as ‘other’—which includes supply to Coles Express fuel stations—declined by 9.3% to $165 million.
Importantly, inflation accounted for only a small part of this growth, with the reported inflation rate at just 1.5%, signaling genuine volume-driven demand and customer engagement.
Online Growth Outpaces In-Store Gains
One of the standout aspects of Coles' performance was the surge in online activity. Digital sales climbed 25.7% year-over-year, reaching $1.06 billion and now make up 11.3% of total revenue—up from 9.3% previously. This signals strong traction in digital adoption as consumers increasingly embrace convenience-focused shopping options.
Coles attributed part of this success to its efforts in improving the shopping experience both in-store and online. Investments in technology, value, and customer satisfaction have been core to this strategy.
Automation Drives Efficiency
This quarter also marked a milestone operationally, as Coles fully activated both its automated distribution centres and customer fulfilment centres. These high-tech facilities are designed to boost supply chain efficiency, reduce costs, and enhance product availability—key factors in sustaining long-term growth and profitability.
Outlook and Trading Update
Looking into early Q4 FY25, sales momentum appears steady, with supermarket growth aligning with Q3 trends. Easter promotions saw positive customer engagement, supporting volume increases. In the liquor segment, sales continue to grow, bolstered by ongoing value campaigns and recent store expansions, including acquisitions in Tasmania.
Management Focus
Coles’ leadership remains committed to enhancing customer experience through operational excellence. The CEO underscored the significance of completing the ramp-up of automation in New South Wales and simplifying its liquor banners as steps that support the next phase of growth.
