Coles Group’s liquor sales revenue in quarter three of FY24/25 rose 3.4% to $813 million, driven by strong Australia Day sales and a reset of its “value offer” to customers.

This included the move to consistent base and promotional pricing across all three retail banners and the nationwide rollout of the Group’s “Price Match Promise”.

Coles Group reported overall sales of $10.4billio for the quarter, up 3.4% from a year earlier.

Coles said headline liquor sales benefited from an uplift in space growth with 31 net new stores added to the portfolio over the last 12 months, including the acquisition of 20 stores in Tasmania in June 2024.

Comparable sales were affected by the timing of Easter Sunday, which fell in the prior corresponding period. Adjusted comparable sales growth was flat.

Coles said the liquor market was flat and continued to be impacted by subdued discretionary spending,

Weckert told The Australian customers were cutting back on treats, alcohol, meat and bottled water due to continuing cost of living pressures. She said they were also cashing in flybuys points to reduce their checkout bills.

eCommerce sales revenue increased by 18.2% with penetration of 6.5% (7.6% including liquor sold through Coles Online).
Strong growth was delivered across both home delivery and Click & Collect channels.

Four new stores were opened, four stores were closed and 10 store renewals were completed. All acquired Tasmanian stores have now been renewed following their conversion to the Liquorland banner in June 2024.

In March, Liquor also announced that it will proceed with the national rollout of its ‘Simply Liquorland’ program. The program will simplify the customer offer by converting Vintage Cellars and First Choice Liquor Market stores to the
Liquorland brand. It will also align product range, promotions, the Flybuys loyalty program and omnichannel services
across the portfolio while still enabling stores to be tailored for local demographics.

The decision follows a successful pilot program which led to increased brand awareness and customer engagement, repeat visits and overall greater shopping satisfaction across the trial stores. Approximately $7 million in program related costs are expected to be incurred in the second half of FY25.

Coles Group CEO Leah Weckert said: “We are pleased to have delivered another solid quarter of sales growth, particularly as we were cycling a very strong third quarter in FY24. These results reflect the continued investments we are making in value and in improving the shopping experience for our customers both in store and online.

“This period also marked our first quarter where we were able to fully operate both our Automated Distribution Centres and our Customer Fulfilment Centres, underpinning improved efficiency and delivering enhanced product availability.

“At the same time we faced a number of major weather events, including Cyclone Alfred and severe flooding in Far North
Queensland. I would like to thank all of our team members for the courage and care they demonstrated in delivering for our customers and communities during these times of need.”

In regard to the outlook for its liquor channels, Coles said it had continued to see positive sales growth underpinned by the success of recent value campaigns and the addition of new space over the last 12 months.

Weckert said: “With the ramp up of our second Automated Distribution Centre in NSW now complete, the ability to deliver a step change in online customer experience through our Customer Fulfilment Centres, and our Liquor banner simplification program underway, we enter the fourth quarter focused on delivering a great shopping experience for our customers underpinned by quality products at affordable prices.”

Coles to axe Vintage Cellars & First Choice banners