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Coles Outpaces Woolworths on Q1 Growth as Online Sales Surge

Strong online demand powered the quarter, with new tobacco rules reshaping the sales mix.

Overview

  • Coles reported group revenue up 3.9% to $10.96bn for the quarter ended September 28, with supermarket sales up 4.8% to $9.96bn.
  • Supermarket eCommerce revenue jumped 27.9% to $1.3bn, and liquor eCommerce rose 6.8% to $63m.
  • Tobacco sales fell 57% and now represent less than 2% of revenue, which Coles linked to legislation changes and illicit-market growth.
  • Supermarket inflation edged to 1.6% year on year, or 1.2% excluding tobacco, as fresh-produce prices eased and meat costs increased faster than shelf prices.
  • Management said early Q2 sales growth is running at similar levels to Q1 and flagged a challenging liquor market, while Woolworths posted 2.1% supermarket sales growth to $13.9bn and 12.9% eCommerce growth to $2.2bn.