Coles, the Australian supermarket giant, has reported strong growth in online sales and digital liquor sales. In the 2024 financial year, Coles saw a 30% increase in online supermarket sales and a 9% increase in digital liquor sales. This contributed to a net profit after tax of $1.1 billion, a 2.1% increase from the previous year. Total group sales revenue also rose by 5.7% to $43.6 billion.
The company’s success in online sales can be attributed to its investment in AI and cloud platforms. Coles has been partnering with leading AI providers to drive operational improvement and enhance customer experience. The company has also developed a new cloud data platform and implemented computer vision solutions in its stores. These technological advancements have allowed Coles to rapidly roll out new capabilities and improve efficiency.
Coles has also been expanding its physical presence. In the 2025 financial year, the company plans to open eight new stores, close five, and renew 50. This expansion strategy is aimed at meeting the changing needs of customers and ensuring convenient access to Coles’ products.
On the digital front, Coles has seen significant growth in its app users and e-commerce sales. Monthly app users have surged by 42.6%, while e-commerce sales at supermarkets have grown by 30.1%. The company has also implemented an automated ordering system for liquor, streamlining the ordering process for customers.
Coles’ success in the liquor business has been slightly impacted by lower customer discretionary spending and the shift away from bulk and affiliated sales. However, the company has made efforts to mitigate these challenges by acquiring 20 liquor stores in Tasmania, ensuring that 30% of the state’s population has a Liquorland within a five-minute drive.
Coles’ CEO, Leah Weckert, expressed gratitude to the company’s staff for their resilience and dedication. She also acknowledged the financial pressures faced by households and emphasized Coles’ commitment to delivering value and improving the quality and availability of its products.
Looking ahead, Coles expects 2025 to be a pivotal year. The company plans to ramp up its automated distribution centers and transition its metropolitan Sydney and Melbourne next-day home delivery orders to automated customer fulfillment centers. Coles believes that these initiatives will bring significant benefits to customers.
Overall, Coles’ strong financial performance and investment in technology demonstrate its commitment to meeting customer needs and staying ahead in the competitive retail industry. By embracing AI and cloud platforms, Coles has been able to enhance its online sales and improve operational efficiency. The company’s expansion plans and focus on customer value further solidify its position as a leading supermarket brand in Australia.
