Australian retailer Coles Group reported group sales revenue of A$11.20bn ($7.85bn) for the first quarter (Q1) of fiscal year 2027 (FY27), an increase of 2.2% compared to last year.
For the period ended 27 September 2026, supermarket sales increased 3.6% to A$10.32bn.
Comparable sales increased 2.7%, compared with 4.6% in the prior-year quarter.
The retailer said e-commerce growth and a higher contribution from its new space and renewal programme partly offset increased competitive and promotional activity.
Supermarkets e-commerce sales increased 22.9% to A$1.62bn.
Sales of Exclusive to Coles, its own-brand range, grew 4.3%, while sales of Coles Finest, its premium private-label tier, rose 13.3%.
Liquor sales revenue declined 1.3% to A$831m.
Revenue in the other segment fell 62.8% to A$58m, reflecting the product supply agreement with Viva Energy Group.
Coles said volumes are declining as the agreement approaches its expiry in November 2026.
According to the company, cost-of-living pressures and elevated competitor promotional activity in the first four weeks of Q2 continued to affect customer behaviour.
Coles said supermarkets sales remained resilient, although growth moderated from the first-quarter level.
Fuel prices have risen over the past two months, which Coles attributed to geopolitical uncertainty.
The company expects additional fuel-related costs in the first half (H1) of the financial year, compared with the prior corresponding period.
It now expects supermarkets earnings before interest and taxes, excluding significant items, during H1 to be in line with the prior corresponding period.
Coles Group managing director and CEO Leah Weckert said: “During the quarter, we were encouraged by strong e-commerce growth, continued gains in 'Exclusive to Coles' and progress across our capital investment programme.
“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. There is more to do to ensure we are front of mind for customers in this environment, and we are taking action to sharpen our offer over the coming months.”
