Coles Signals Supermarket Revenue Growth Holding Up Despite Uncertainty

By David Winning

SYDNEY--Coles signaled that supermarket sales have broadly held up since the Middle East conflict began, but it was facing higher costs for fuel, freight and packaging.

Coles on Friday said supermarket sales revenue rose by 4.0% to 9.78 billion Australian dollars (US$7.04 billion) in the 12 weeks from January 5 through March 29. That contributed to sales revenue across the group rising 3.1% to A$10.70 billion in the period.

"In the early part of the fourth quarter, Supermarkets sales revenue growth has remained broadly in line with the third quarter," Coles said.

Still, it acknowledged that household budgets were being stretched by rising fuel prices. That could be a double-edged sword for grocers as consumers trade down to cheaper items in store, but also decide to spend more time cooking at home rather than ordering takeout or dining in restaurants.

Coles said its suppliers had sought to raise prices in recent weeks to offset rising costs. It had also faced higher costs in its own operations.

"We are actively managing these and will mitigate impacts where possible, while balancing the needs of customers and suppliers," Coles said.

Coles said liquor sales totaled A$781 million in the third quarter, falling 3.9% on year. March was especially soft as consumer sentiment weakened due to heightened geopolitical uncertainty caused by the conflict in the Middle East.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

April 30, 2026 19:04 ET (23:04 GMT)