Jefferies notes Coles' sales growth lead over Woolworths, but warns on pace of future share gains

Woolworths

30/10/2025 20:05

** Jefferies analysts acknowledge Coles' COL.AX stronger Q1 growth versus Woolworths WOW.AX, but caution that the market is focused on the pace of future share gains

** They note that like-for-like (LFL) sales in Coles' supermarket segment rose 4.6%, beating analysts' estimates and outperforming Woolworths' Australian food LFL sales, but flag slower total sales growth across supermarkets & liquor in the last 5 weeks of the quarter

** Add that co's private labels grew more than Woolworths' in Q1, and both online supermarket sales and in-store sales surged ahead of WOW, at 27.9% and 2% respectively

** Note, however, WOW may have started closing the gap in September, following investments in value and inventory

** While Coles is expected to continue gaining share, analysts suggest the rate of gain may moderate for some time

** Add COL enjoys numerous margin tailwinds into FY26, enabling reinvestment in price/service, while still delivering another record margin

** Stock up 17% YTD

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))