Coles is seeing sales grow because shoppers are trading towards value, and that shift is changing how the supermarket group manages range, own brand and online. In a difficult economic backdrop, the numbers suggest the basket is holding up, but the mix is moving underneath.
For FMCG suppliers, that matters as much as the top-line growth. It points to stronger demand for pantry staples, more pressure on supplier funding requests and a harder fight for shelf space where value credentials now matter more than ever.
What Coles sales growth says about the value reset in grocery
Coles sales growth is not just a sign of more traffic or bigger baskets. It reflects a shopper base that is still buying, but buying differently, with value, availability and trusted staples doing more of the work.
That is a familiar pattern in Australian grocery whenever household budgets tighten. The difference now is that Coles is pairing that behaviour shift with a deeper own brand strategy and a stronger online offer, which gives it more levers to protect margin while keeping customers in the aisle.
In practical terms, that means suppliers are competing in a market where price, pack architecture and range relevance all count at once. For buyers and brand managers, the signal is clear: growth is still there, but it is concentrating around propositions that make the customer feel safe on spend.
Coles sales growth, own brand and e-commerce in the third quarter
Coles reported fiscal third quarter sales of $9.8 billion across the group, up 4 per cent year on year. Excluding tobacco, sales rose 5.7 per cent, which gives a cleaner read on core grocery demand.
The company said it is seeing stronger demand for pantry staples, and it linked that to the ongoing conflict in the Middle East and its broader impact on consumer behaviour and supply chains. That is a useful reminder that geopolitics can still show up in the supermarket through basket composition rather than just freight costs.
Leah Weckert said Coles delivered “another strong sales result” and pointed to “disciplined execution” against strategic priorities. The company also said it is now seeing more supplier cost price increase requests, alongside higher costs in its own operations.
That matters because Coles is trying to hold the line on value while costs move against it. The retailer said it will mitigate impacts where possible while balancing the needs of customers and suppliers, which is trade language for a careful squeeze rather than an open-handed response.
| Metric | Reported result | Commercial read-through |
|---|---|---|
| Group sales | $9.8 billion, up 4 per cent | Overall demand remains resilient |
| Sales excluding tobacco | Up 5.7 per cent | Core grocery growth is stronger than the headline |
| Exclusive to Coles sales | Up 7.3 per cent | Own brand and exclusives are gaining traction |
| Coles Finest revenue | Up 8.2 per cent | Premium own label is still finding room to grow |
| E-commerce sales revenue | Up 24.8 per cent | Online remains the fastest-growing part of the mix |
The retailer said “Exclusive to Coles” sales increased 7.3 per cent after 142 new products were added to the portfolio. Within that, Coles Finest was the strongest performing category, with revenue up 8.2 per cent. That tells me the own label story is no longer only about cheaper alternatives; it now spans both ends of the value spectrum.
Coles also reported e-commerce sales revenue up 24.8 per cent. That is a meaningful number for suppliers because it changes how products are discovered, substituted and promoted, especially in categories where search results and recommended alternatives shape the final basket.
What this does not change for suppliers and retailers
These results do not mean grocery inflation has disappeared, or that shoppers have suddenly become less price sensitive. If anything, the numbers show the opposite: people are still spending, but they are scrutinising every dollar.
Nor do the results remove the structural pressure from supplier cost price increase requests, freight volatility or labour cost growth. Coles can manage the mix, but it cannot repeal the economics of the supply chain.
For suppliers, the timing is mixed. Those with strong value propositions, efficient pack sizes and relevance in pantry staples should benefit first. Premium suppliers can still win, but only if they can justify the shelf price with clear trade-up appeal and a retailer ready to back the range.
Why Coles sales growth matters in the next phase of grocery competition
What stands out to me is how neatly this result fits the current supermarket cycle in Australia. Retailers are no longer just chasing traffic; they are defending their value proposition while trying to widen the share of spend that lands in own brand and online.
That makes Coles sales growth strategically important beyond the quarter itself. If value remains the customer’s default filter, then range optimisation, private label development and e-commerce execution become the real battlegrounds, not just promotional spend. For FMCG suppliers, the priority is to stay visible in a market that rewards usefulness, trust and price discipline in equal measure.
If Coles can keep sales momentum while steering more shoppers towards its own label and online channels, every supplier will need a sharper answer to what role it actually plays on shelf.