Coles is watching closely for any flow-on effects from US President Donald Trump’s global tariffs that could threaten the supermarket’s improving sales, deflation, and dent consumer sentiment, which has started looking up.
Chief executive Leah Weckert said the direct impact of Trump’s tariffs would likely be “very minimal” as the supermarket unveiled a 3.7 per cent sales lift over the three months between early January and the end of March.
Coles reported deflating prices in fresh produce.Credit: Eamon Gallagher
“What we are keeping an eye on, though, is, are there secondary effects or indirect impacts that could come through? I think it’s probably too early to really tell on that,” Weckert told reporters on Wednesday morning.
Processing fees around meat, particularly beef, is an area the supermarket is closely watching, she added.
Coles notched $9.4 billion in supermarket sales, aided by a 25.7 per cent growth in online sales to $1.1 billion. Liquor sales, which have previously been a weaker area for the supermarket amid competition from Dan Murphy’s and BWS, grew 3.4 per cent.
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However, investors appear unimpressed with the result, sending Coles’ share price 1.3 per cent lower in late morning trading.
The supermarket reported falling prices in fresh produce, such as broccoli, cauliflower, cabbage, and tomatoes, as well as packaged goods like cereal, tea, healthcare products, dishwashing products, and cleaning products.
“We have seen a modest uptick in terms of how people are feeling, which is good, although I would say that some of the events from the US and around the tariffs are probably offsetting that,” Weckert said.
