Coles has reported “ongoing softness in the liquor market” through its first quarter of the 2026 financial year, with “consumers remaining focused on value”.
Liquor sales revenue through the period was $842m, 1.1 per cent down on the prior corresponding period (pcp), with comparable sales declining by 1.4 per cent. Overall the supermarket giant reported total group sales revenue of $10.96bn, a 3.9 per cent increase from $10.54bn in the pcp.
Coles Group CEO Leah Weckert said: “We are pleased with our performance over the quarter with Supermarket sales growth reflecting the focus we have had on value, quality and the customer experience. We continue to see positive results from our major transformation projects with availability reaching its highest levels since pre-COVID and eCommerce sales penetration reaching 13.3 per cent.
“In Liquor, we made significant progress with our ‘Simply Liquorland’ banner simplification making our network more accessible to a broader audience and delivering a positive impact on sales.
“The commitment and dedication of our team members remains critical to our success and I would like to thank them for the role they have played in delivering for our customers over the period.”
Coles said its ‘Simply Liquorland’ banner simplification is progressing well with 61 stores converted in the quarter, bringing the total number of stores converted to 112. The group also opened four new stores and closed seven over the course of the reporting period.
The retailer also said consumers were responding well to the conversion program with total sales growth from the renewed stores exceeding the broader portfolio “with Vintage Cellars conversions in particular attracting a broader customer base and strong transaction growth”.
One strong area of growth for Coles Liquor was ecommerce, which saw a 6.8 per cent increase in sales, up from $59m in the pcp to $63m.
Looking ahead Coles said the liquor market remains challenging, with “consumers remaining budget conscious.”
The results statement said: “With the festive season approaching, we are focused on ensuring we have the right range and value proposition to cater for all entertaining occasions as well as leveraging our unique portfolio to provide customers with a convenient way to solve for their combined food and drink needs.
“As part of this, we plan to complete the vast majority of our remaining ‘Simply Liquorland’ store conversions by the end of the calendar year.”
Weckert added: “We remain committed to ensuring customers can find great value when they shop at Coles. We have designed our Christmas range to cater for every taste and budget and we are continuing to focus on our omnichannel customer experience to enable customers to shop with ease either in store or online during this busy period.”