The cost-of-living crisis continues to impact liquor sales for Coles, which has reported flat revenue of $851 million for the first quarter of FY25, while comparable sales declining by 4.4%.

Coles said sales in the quarter continued to be impacted by the subdued economic environment with consumers constraining their discretionary spending.

“Pleasingly for customers, liquor inflation continued to moderate in the first quarter,” the company noted. “Sales were also
impacted by the continued transition away from less profitable bulk and affiliate sales during the quarter and the
CrowdStrike outage in July.”

Coles Group CEO Leah Weckert said: “Cost of living remains a challenge for many of our customers, and we are focused on helping them find value in our stores through weekly specials, value campaigns, Flybuys and exclusive brands.”

Headline sales benefitted from higher space growth following the acquisition of 20 stores in Tasmania and the effect of event timing with the AFL Grand Final occurring in 1Q25 (compared to 2Q24).

eCommerce sales revenue declined by 1.9% with penetration of 6.4% (7.6% including Coles Online). 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.

The Exclusive Liquor Brand (ELB) portfolio was expanded with 80 new lines added in the quarter and 171 awards were
received, including a Gold award for Jim Barry ‘Barry & Sons’ Riesling at the 2024 Perth Royal Wine Awards.

For the second half, Coles said sales revenue growth in liquor “remains subdued with the business focused on providing a compelling value proposition for the festive season”.

Coles Liquor Chief Executive Michael Courtney said customers can choose from hundreds of award-winning drinks from
Liquorland this festive season.

“With 87 new drinks available at Liquorland this Christmas, our range offers something for every taste and budget,” he said.

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