A ‘normalising’ of consumer shopping behaviour and improved availability of products boosted Coles’ first-quarter sales.

For the 13 weeks to 25 September, group sales grew 1.3 per cent to $9.8 billion as the business cycled Covid-related lockdowns in NSW, Victoria and ACT.

Supermarket sales increased by 1.6 per cent to $8.8 billion while comparable sales grew by 2.1 per cent. With customers returning to shopping in-store, e-commerce sales declined by 11.5 per cent. 

The business’ liquor division registered $836 million in sales, down by 4.3 per cent. Liquorland was the strongest performing banner while the ready-to-drink category was a key driver of growth. Online sales grew 3.9 per cent during the quarter.

The fuel and convenience business was also sold to Viva Energy during the quarter. However, this segment registered $284 million in sales, up 8.4 per cent compared to the corresponding period last year. 

The increase in sales is credited to the food-to-go category, particularly hot fast food and coffee and lower fuel volumes. 

Coles’ CEO Steven Cain described the sales growth trajectory as “pleasing” despite record levels of consumer spending on hospitality.

“Our commitment to providing trusted value, including Australia’s widest range of own brand products and the successful introduction of ‘Dropped and Locked’ prices, is more relevant than ever with rising inflation placing pressure on many Australian households.”