Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

Coles sees strong demand in home brand, keeps 'eye on' tariff ripple effects

Published by Global Banking and Finance Review

Posted on April 29, 2025

Featured image for article about Finance

By Rishav Chatterjee and Adwitiya Srivastava

(Reuters) -Australian supermarket chain Coles' chief said on Wednesday that shoppers remain sharply focused on value, driving strong quarterly growth in its premium home-brand line, while it keeps a close eye on potential impacts from global tariffs.

CEO Leah Weckert flagged that while the company is not directly affected by tariffs levied by U.S. President Donald Trump, it has been "keeping an eye on" indirect effects of the global trade war, such as on beef production.

The company's latest survey had shown a "modest uptick in terms of how people are feeling ... although I would say that some of the events from the U.S. and around the tariffs are probably offsetting that - the uncertainty that is bringing," she told reporters on a conference call.

Coles reported third quarter group sales of A$10.38 billion ($6.64 billion), 3.4% higher than last year, reflecting strong growth at its supermarket business on higher volumes.

Weckert said customers were looking for more affordable options, resulting in a 13.7% rise in sales at Coles Finest, the company's premium home brand.

Coles said product availability improved during the quarter as new automated distribution centres came online, while warehouse enhancements contributed to a smoother experience for online shoppers.

Analysts at Jefferies said the quarterly result was a solid outcome given sales accelerated from a relatively strong base in the same quarter a year earlier.

Investors, however failed to cheer the results, with the Coles stock trading 1.3% lower in Sydney.

The grocer flagged that supermarket sales growth in the fourth quarter remained broadly in line with the previous three months.

"The Q4 outlook appears to be running in line with Q3 at this stage, which again is decent but fell short of wowing investors and that's why Coles' stock price had a hard time garnering much enthusiasm today," said Tim Waterer, market analyst at KCM Trade.

($1 = 1.5625 Australian dollars)

(Reporting by Rishav Chatterjee and Adwitiya Srivastava and John Biju in Bengaluru; Editing by Alan Barona and Sonali Paul)