Coles has released its full-year results, including liquor sales revenue of $3.7 billion, up 1.1% compared to the prior year.

However, in the fourth quarter, sales revenue declined by 0.5% and comparable sales declined by 0.6%.

Coles said the liquor market “remained subdued throughout the year with cost-of-living pressures continuing to influence customer behaviours”.

It follows Endeavour Group reporting cost-of-living pressures had resulted in its retail sales declining by 1.2% to $10 billion during FY25.

Coles Liquor sales growth was supported by new stores, including its Tasmanian acquisition, strong trading across key events, including Christmas and Easter and a positive response to increased tailoring of store ranges to cater for local demand, particularly in the wine category.

Liquorland conversion success continues

In the third quarter, the ‘Simply Liquorland’ banner simplification commenced following a successful pilot across selected stores in South Australia, Victoria and Queensland.

At year end, 52 stores had been converted to the Liquorland banner.

Coles said early results had been positive with an increase in sales, strong transaction growth and customer NPS exceeding the broader portfolio.

During the year, 16 new stores were opened, 10 stores closed and 118 store renewals completed, inclusive of the ‘Simply Liquorland’ conversions. At the end of the year, the portfolio comprised 998 stores.

Non-recurring costs of $8 million were incurred in relation to ‘Simply Liquorland’. Inclusive of these costs and the one-off costs of $11 million that were incurred in FY24 in relation to a prior year tax adjustment and IT write-off, reported EBITDA and EBIT decreased by 2.2% and 8.6% respectively.

Outlook for FY26

In the first eight weeks of FY 26 liquor sales revenue growth was flat for Coles. However, the group said investments it was making in ‘Simply Liquorland’ and in streamlining its operations will enable it benefit from improved operating leverage as cost-of-living pressures ease.

‘Simply Liquorland’ is expected to be completed by the third quarter of FY26 and incur one-off costs of approximately $20 million.

Coles Group CEO Leah Weckert said: “As we enter FY26, we are again clear on the priorities for the year ahead.

“Ensuring our value proposition and offer resonates with customers, delivering consistent quality and availability, continuously improving customer experience in-store and online and maintaining a laser focus on costs. We are also
focused on unlocking the full benefits from our ADC and CFC investments for the benefit of both customers and
shareholders.”

Endeavour Group reveals FY25 retail sales decline