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Investing.com-- Coles Group (ASX:COL) posted a nearly 4% rise in first-quarter sales on Thursday, as steady supermarket demand and stronger online orders offset weakness in its liquor business amid price-sensitive consumers.
Group sales for the 13 weeks ended Sept. 28 rose to A$10.96 billion from A$10.55 billion a year earlier. Supermarket revenue climbed 4.8% to A$9.97 billion, driven by customers seeking value and quality amid persistent cost-of-living pressures, the retailer said.
Chief Executive Leah Weckert said that product availability reached its highest level since before the pandemic. eCommerce revenue surged 27.9% during the quarter, taking online penetration in supermarkets to 13.3%.
Australia’s second-largest grocer said inflation across supermarket products excluding tobacco eased to 1.2% from 1.5% in the previous quarter, reflecting an abundant supply of fruit and vegetables. Meat prices rose as higher livestock costs outpaced shelf price increases.
Liquor sales fell 1.1% to A$842 million, with comparable sales down 1.4% as consumers reined in discretionary spending.
Sydney-listed shares of the company fell 3% to A$22.03, their lowest level in over two months.
Coles said supermarket sales growth had continued at similar levels early in the second quarter.