Planning your growth strategy into Australian Retail through a deeper understanding of the leading retailers financial reporting and market outlook.
Coles Group and Woolworths Financial year 2025
Australia’s grocery retail landscape has delivered another revealing snapshot of market realities with the release of its latest financial results through sector leaders Coles Group and Woolworths. Amid persistent inflation and evolving consumer spending patterns, the sector’s performance metrics underscore both the resilience and adaptability required of today’s retailers. For food and beverage companies, these financial outcomes carry critical strategic implications—signaling not only where consumer priorities are shifting, but also highlighting operational efficiencies, pricing power, and margin pressures across the supply chain. By analysing these results through a corporate lens, industry leaders can better position themselves to anticipate retailer demands, optimise their portfolios, and capitalise on emerging growth opportunities in a dynamic and competitive marketplace.
This week saw Coles reporting first, with key highlights including: –
- 6% increase in sales revenue, with Supermarkets growing by 4.3% and liquor 1.1%
- Total Sales revenue $44.35bn
- Net profit exceeding the $1bn mark at $1.08bn
- E-commerce growth of 24.4% for Supermarkets
- E-commerce growth of 7.2% in Liquor
- E-commerce sales exceeding $4.5bn and 11.2% penetration
- Key strategic Pillar of Simplify and Save to invest delivered $327m towards its 4-year target of $1bn
- Own or Exclusive brands, continues to grow with 970 products launched into Supermarkets and 196 into Liquor
- Loyalty measures included a 4.4% growth in active Flybuy memberships to just under 10m and a 13.3% increase in redemption levels.
Additional strategic updates included: –
- The transition of next day home delivery services to the Customer Fulfillment centres in Melbourne & Sydney
- New Ambient DC online in Sydney (Kemps Creek)
- Significant impact and control at a store level reducing theft and loss through investment
- Value, quality and availability remain trading priorities.
- Under the store refurbishment plan they expect to close 2, open 12 Supermarkets, and renew ~70 Liquor stores, with 19 new openings and 25 likely to close
In a highly dynamic market this update provides an essential insight for UK Food and Drink businesses targeting Australia for strategic growth.
A look into 2026 with the last 8 weeks trading
- Supermarket sales increased by 4.9%
- Liquor sales flat in a subdued market
A strong set of results demonstrating momentum and the execution of the strategy with no major strategic changes announced, more of doing the same to build on growth. With the news well received by the investment community shares rose significantly
Woolworths reported the following day, top line details included: –
- Total Group sales up 3.6%
- NZ food Sales 3.4%
- Australian Food Sales increased 3.1%
- E-com growth 17.4%, driven by same day, direct to boot and Milk run
- B2B (including PFD) 4.1%
- Petstock EBIT margin 5.1% (for its 1st year of WW ownership)
- Supply chain disruption (DC strike) pre-Xmas having a significant impact on sales reflective in final year performance
- Food inflation <1%
- Private Label Sales growth >5%
- 6 new store openings and 68 refitted
Focus areas for the remainder of the year including: –
- Focus on fundamentals, value, range and availability
- Embedding new structure and leadership team
- Improved trading and ways of working
- A look into 2026 with the last 8 weeks trading
- Australian Supermarkets sales up 2.1%
- NZ Supermarkets sales up 2.6%
With the news concerning the investment community shares dropped significantly
Let’s interpret the data, key takeouts: –
- Private label or exclusive brand growth strategies across both retailers create opportunity for domestic and international Food and Drink business with leading contract manufacturing capabilities
- Online continues to grow creating strategic opportunities for new entrant brands to reach Australian customers through online listings ahead of traditional store placements
- Coles continue to have momentum and whilst having fewer total stores a strong consideration when looking to enter the market
- Woolworths are undergoing a strategic reset and looking to be disruptive as such potentially open to customer focused branded solutions that help drive customer participation
- Price and Value remain a critical element in the market across both everyday items and promotional plans for brand owners. Prior to entering the market it’s essential to have a concise understanding of the category and marketing messages resonating with consumers, alongside a Marketing strategy.
- In a highly competitive market understanding the category dynamics and customer journey is essential before engaging your target buyer
In our latest blog post, we’ll delve into what this means for both the market landscape and explore the strategies you need to thrive in this exciting new territory. Understanding the high growth categories. Brand strategies and changing customer dynamics enables you to better understand the growth opportunities for your business.
This report offers valuable insights on how the investment market has reacted compared to expectations. It also delves into the impact of consumer habits on driving growth and changing purchasing patterns, which in turn shape the retail landscape. Additionally, it highlights the key challenges that will require strategic attention in the current financial year.
For UK manufacturers seeking growth in markets like Australia, it’s essential to grasp trading updates and financial reporting. This understanding allows tailored offers to align with the market’s current narrative.
Prof. Consulting Group.
Are you looking to break into the Australian food industry? Look no further than Prof. Consulting Group! With our team of industry-leading experts and extensive range of services, we’ll help you take your business to the next level.
For more information or to discuss how Prof. Consulting Group can support your business, please visit https://www.profcg.com/contact/.
