Coles has released its financial report for the first quarter of Financial Year 2025 with liquor sales of $851m being flat on the corresponding period and comparable sales declining by 4.4 per cent.
While there is some good news with liquor inflations continuing to moderate through the first quarter, sales continue to be impacted by the subdued economic environment with consumers constraining their discretionary spending.
Coles Group CEO, Leah Weckert, said: “As our customers remain focused on cost of living pressures, we will continue to invest in value providing a competitive and compelling offer for Australian families.
“We are also investing for the future in projects such as our automated distribution centres. These will improve the efficiency of our business, enabling us to support further investment in the customer offer and deliver returns to our shareholders for many years to come.”
Across the liquor business there were varied results, with eCommerce sales declining by 1.9 per cent.
In its statement to the ASX, Coles said: “eCommerce sales were particularly impacted by the cycling of higher affiliate and bulk sales in the prior corresponding period. This was partially offset by continued growth in the on-demand channel. Engagement through our Flybuys loyalty program remained strong with swipe rates increasing across all banners.”
The Coles exclusive brand portfolio was expanded by 80 new lines in the quarter, with Coles saying that customers “are increasingly recognising the quality and value attributes across the exclusive liquor brand range”.
Coles has continued to develop its plans to consolidate its banner groups under the Liquorland brands, with selected Vintage Cellars to be converted to Liquorland Cellars and participating First Choice Liquor Market stores to be rebranded as Liquorland Warehouse.
The ASX statement said: “Commencing in November, the pilot will be implemented in all stores across South Australia and a small number of stores in Victoria and Queensland and is expected to provide a more compelling customer offer by bringing the best elements of Liquorland, First Choice Liquor Market and Vintage Cellars together under our largest and most recognised brand.”
Over the course of the quarter one new store was opened, two stores were closed, and 21 store renewals were completed, with the Coles Liquor portfolio comprising 991 stores at the end of the quarter.