Coles has seen the revenue from its Coles 360 retail media arm climb 13.5 per cent year-on-year.
The grocer said the increase in its revenue was thanks to its “omnichannel focus” and it improvements in the utilisation of its in-store and digital media assets through supplier campaigns, while new digital media assets were introduced in the Coles app.
Coles’ ecommerce sales were up 22 per cent from $3.7 billion in the 2024 financial to $4.5 billion this financial year, with its ecommerce penetration was up 19 per cent to 11.2 per cent.
Overall, Coles Group’s sales revenue climbed 3.6 per cent to $44 billion. Its profit, excluding significant items, was $1.104 billion, missing market expectations by a cool $96 million.
“As customers increasingly seek flexibility in the way they shop in store and online, we are growing and adapting our digital platforms and ecommerce fulfilment channels to create a more seamless omnichannel experience,” Coles wrote in its annual report, also released today.
“We are removing friction points, making it easier to find information and navigate both our digital platforms and physical stores and using our data to further personalise our customer interactions and build loyalty. In parallel, we are building new revenue streams through businesses such as Coles 360, our retail media business, QuiteLike, our meal kit subscription service, and Swaggle, our specialty pet business.”
Earlier this month, Coles announced that the Retail Mediaworks’ Redworks team which had been behind the creation and growth of Coles’ retail media business, would be brought in-house in September.
Over the past four years, it has delivered end-to-end media strategy, sales partnerships, and ad operations.
Michael Courtney, chief customer and digital officer at Coles Group, thanked Redworks for its efforts of the past four years, saying the team has helped grow Coles 360 “ahead of target”, making it “a leading retail media network in Australia”.
“Coles is pleased to welcome members of the Redworks team, who will have the opportunity to join Coles Group within our retail media business, Coles 360,” he said in a release.
“This integration will strengthen Coles’ retail media capabilities, enabling us to better collaborate with our suppliers and communicate more effectively with our customers.”
Earlier this year, Paul Brooks departed as general manager of Coles 360 as it sought a leader based in Melbourne where the rest of the team was located.
Coles’ marketing expenses also climbed 5 per cent year-on-year to $244 million. Earlier this year, the business restructured its marketing team with CMO Power List-er Amanda McVay departing. Coles Liquor CEO Michael Courtney is her replacement as chief customer and digital officer.
Woolworths’ results will be released tomorrow.
