Q1 FY27 highlights: Coles Group sales revenue up 2.2% to $11.2 billion
In its Q1 FY27 sales results for the 13 weeks from 29 June to 27 September 2026, Coles Group recorded Total Group sales revenue of $11,209m, up 2.2% from $10,963m in 1Q26. Supermarkets delivered $10,320m, an increase of 3.6%, with comparable sales growth of 2.7%.
Supermarkets showed a two-year growth rate of 10.7% ex-tobacco. The company described the market as competitive and value-focused.
Leah Weckert, Managing Director and CEO
“During the quarter we were encouraged by strong eCommerce growth, continued gains in Exclusive to Coles and progress across our capital investment program. While Supermarkets sales growth remained in line with the prior quarter, we know household budgets are under pressure and customers are shopping more deliberately across retailers and channels…”
The table below sets out Q1 FY27 sales revenue by segment.
| Segment | 1Q27 ($M) | 1Q26 ($M) | Change | Comparable growth |
|---|---|---|---|---|
| Supermarkets | **10,320** | **9,965** | **3.6%** | **2.7%** |
| Liquor | **831** | **842** | **(1.3%)** | **(1.3%)** |
| Other | **58** | **156** | **(62.8%)** | n/m |
| Total Group sales revenue | **11,209** | **10,963** | **2.2%** | n/m |
n/m denotes not meaningful.
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Supermarkets performance: eCommerce and Exclusive to Coles lead growth
Strong eCommerce growth and an increased contribution from the new space and renewal program were partly offset by heightened competitive and promotional activity. Customers remained value-conscious, with continued cross-shopping across retailers and channels.
eCommerce and loyalty
Supermarkets eCommerce sales rose 22.9% to $1,623m, lifting penetration to 15.7% from 13.3%. Growth was led by the CFC-fulfilled and immediacy channels.
Coles 360 income increased 5.1%, supported by growing supplier engagement with the expanding online proposition. This figure includes Coles 360 income in Supermarkets and Liquor.
Flybuys engagement was strong, with the value customers redeemed using Flybuys points at Coles up 16%. The company linked this to its ‘Shop. Scan. WIN!’, Curtis Stone Glass Container and Entertaining campaigns, together with the introduction of ‘Pay with Points’.
Own Brand, Fresh and inflation
Exclusive to Coles sales increased 4.3%, ahead of overall Supermarkets sales growth, with more than 80 new Own Brand products launched. Coles Finest remained the strongest-performing tier, up 13.3%. Fresh grew ahead of the rest of store, led by meat and dairy.
Supermarkets price inflation was 1.1% (1.0% in 4Q26), or 1.0% excluding tobacco. Comparable sales growth moderated to 2.7% from 4.6% in 1Q26, and the company cited heightened competitive and promotional activity alongside increased investment in value.
Coles’ FY26 full year results showed EBIT growth of 9.9% running well ahead of 2.8% sales growth, supported by $311m in productivity benefits, which frames how much of the current margin story rests on cost efficiency rather than top-line momentum.
Other Supermarkets metrics for the quarter:
- Sales density of $20,443/sqm (moving annual total), up 2.2%
- Eight new supermarkets opened and seven renewals completed
Liquor and Other segments
Liquor sales revenue was $831m, down 1.3%, in line with comparable sales. The decline moderated as the convenience portfolio remained in positive growth and trends improved across Warehouse stores.
Key Liquor developments in the quarter:
- Customer preferences continued to shift towards smaller pack sizes and Ready-to-Drink (RTD) products
- eCommerce sales through coles.com.au increased by almost 20%
- The Father’s Day Wine & Steak offer delivered double-digit growth in combined steak and red wine sales
- Customer NPS reached an all-time high
- Nine new stores opened, three closed and four renewals completed, leaving 994 Liquor stores
The Other segment recorded $58m relating to the Product Supply Agreement (PSA) with Viva Energy Group Ltd. Volumes are declining as the PSA nears its expiry in November 2026.
Understanding eCommerce penetration and why it matters
eCommerce penetration measures online sales as a share of total sales. Supermarkets penetration of 15.7% includes Liquor sold through coles.com.au. Sales density measures sales per square metre of store space, calculated here on a rolling 52-week basis.
For investors, higher penetration alongside continued expansion of Rapid Click & Collect coverage and growth in Coles 360 income points to online as a growing channel for the group.
The company also reported progress on its investment programme: roll-out of electronic shelf labels (ESL) commenced, the strategic partnership with Accenture was expanded, and establishment of the Coles Capability Centre progressed.
Outlook and what happens next for Coles
Cost-of-living pressures and elevated competitor promotional activity continued to influence customer behaviour in the first four weeks of the second quarter. Supermarkets sales have remained resilient, although growth has moderated compared to Q1.
The company pointed to targeted investments in value, including the recent relaunch of its Every Day Price program, and the launch of its largest-ever Exclusive to Coles Christmas range. It also noted higher fuel prices over the last two months and expects additional fuel-related costs in the first half compared to the prior corresponding period.
Promotional intensity also sits under regulatory scrutiny, with the Federal Court’s Down Down ruling finding that promotional timing was misleading and leaving civil penalty exposure unresolved for the supermarket operator.
As a result, Coles now expects first half Supermarkets EBIT (excluding significant items) to be in line with the prior corresponding period. In Liquor, the sales revenue decline in the early part of the second quarter was broadly in line with Q1.
Stated forward events and reporting periods:
- The Product Supply Agreement with Viva Energy Group Ltd is due to expire in November 2026.
- First half FY27 Supermarkets EBIT (excluding significant items) is expected to be in line with the prior corresponding period.
- The Q2 FY27 reporting period runs from 28 September 2026 to 3 January 2027 (14 weeks), followed by Q3 FY27 from 4 January to 28 March 2027, per the company’s reporting calendar.
Leah Weckert, Managing Director and CEO
“We are investing more in lower prices and value for customers, while continuing to improve the customer experience. I am confident that our teams’ focus on providing, quality, choice and inspiration for customers will deliver improving sales momentum through the festive season.”
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