Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Coles Gains on ASX as Digital Sales Strengthen Expansion Momentum
Highlights
Coles Group Limited (ASX: COL) shares traded at a current market price (CMP) of AU$22.600, representing a gain of 1.8%. In AGM announcements released on 6 November 2026, the retailer outlined higher earnings, growing online demand and an expanded investment programme. Its next challenge is converting these operational gains into sustained growth amid cautious consumer spending.
Higher Earnings Support Dividends
According to Coles, FY2026 group sales totalled AU$45.6 billion. Net profit after tax excluding significant items reached AU$1.26 billion, while shareholder payments amounted to AU$979 million during the financial year.
The company reported supermarket sales growth excluding tobacco of 5.1%, alongside a 12.2% increase in supermarket EBIT. inflation excluding tobacco held at 1.2%, matching the previous year.
Online Demand Remains Strong
Coles reported FY2026 supermarket eCommerce revenue of AU$5.6 billion, equivalent to 13.6% of supermarket sales. Customer fulfilment centres recorded positive EBITDA during their second operating year, marking progress in the economics of online operations.
According to the company, first-quarter FY2027 group revenue increased 2.2% to AU$11.2 billion. Supermarket sales grew 3.6%, while eCommerce sales rose 22.9%. Online penetration reached 15.7%, although liquor sales fell 1.3%.
Network Expansion Gains Pace
According to management, Coles opened 13 supermarkets and renewed 71 stores during FY2026. Approximately 45 supermarket openings and 150 renewals are planned across FY2027 and FY2028.
The company stated its Victorian automated distribution centre would handle 4.6 million cartons weekly, approximately 15% above its existing facilities. It also anticipates opening 20 co-located liquor stores in FY2027, following 16 openings in FY2026.
Outlook
Digital adoption, upgraded logistics and a broader store network could support Coles’ next stage of growth. Delivering attractive returns will depend on investment discipline, productivity gains and customer retention. Meanwhile, difficult liquor trading conditions and unresolved historical employee pay and promotional pricing proceedings remain uncertainties. Their development could influence investor confidence as expansion progresses over the coming financial periods.
Note- All data presented is based on information available at the time of writing.
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