Coles has released its financial report for the first quarter of the 2025 fiscal year, revealing flat liquor sales of $851 million compared to the same period last year, with comparable sales declining by 4.4 percent.
While there is some positive news regarding the moderation of liquor inflation during this period, overall sales have been affected by a subdued economic climate, leading consumers to limit discretionary spending.
Leah Weckert, CEO of Coles Group, stated, “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.”
Results within the liquor segment varied, with eCommerce sales declining by 1.9 percent. Coles attributed this decline to a comparison with the previous year, which saw higher affiliate and bulk sales. However, this was somewhat offset by growth in the on-demand channel. Engagement through the Flybuys loyalty program remained strong, with swipe rates increasing across all banners.
In the quarter, Coles expanded its exclusive brand portfolio by 80 new lines, highlighting that customers are increasingly recognizing the quality and value of the exclusive liquor brand range.
Additionally, Coles is advancing plans to consolidate its banner groups under the Liquorland brand. Selected Vintage Cellars will be converted to Liquorland Cellars, and some First Choice Liquor Market stores will be rebranded as Liquorland Warehouse. A pilot program will begin in November, implemented in all stores across South Australia and select locations in Victoria and Queensland. This initiative aims to enhance customer offerings by merging the best features of Liquorland, First Choice Liquor Market, and Vintage Cellars.
During the quarter, Coles opened one new store, closed two, and completed 21 store renewals, concluding the period with a total of 991 stores in its liquor portfolio.
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