• Coles released its first quarter 2021 results, reporting a group sales revenue of $9.5 billion.
• The company also reported a rise in online supermarket sales, which lifted 73%.
• Much of Coles’ sales growth was attributed to shopping across Victoria amid tougher coronavirus restrictions.
• Visit Business Insider Australia’s homepage for more stories.

Coles has seen online sales skyrocket – and it says Victoria’s lockdown played a big part.

The supermarket giant released its first quarter 2021 results, with its group sales revenue rising 10.5% to $9.5 billion.

A standout performer during the quarter was online supermarket sales, which shot up 73%. Much of the sales growth across supermarkets was sparked by Victoria – followed by New South Wales – as tougher coronavirus restrictions were introduced.

Online sales in Victoria rose more than 100% as restrictions were brought back in response to the second wave.

To better cater to customers, Coles increased the number of stores with Click and Collect options by 14%, bringing the total to 450. It also introduced single-click checkout for online shopping.

“We have made further progress executing our strategy to ensure the long-term growth of Coles, particularly in digital and online,” Coles Group CEO Steven Cain said in a statement.

“This is despite significant COVID related restrictions in Victoria related to our main Store Support Centre, our distribution centres, our meat suppliers and of course, our customers – many of whom were not able to visit their regular Coles store due to the restriction on not travelling more than 5 kilometres from home or permitted workplaces.”

As Aussies focused on hygiene and cooking at home, Coles saw an uptick in products such as baking mixes, flour, herbs and spices, cleaning supplies and dishwashing, which grew by around 30%. On the flip side, infant formula, facial tissues and beauty products had “double digit declines”.

Looking at Coles supermarkets, sales revenue reached $8.5 billion for the first quarter, a 9.8% increase from the same time last year. Liquor sales revenue also experienced an increase, rising 17.4% to $852 million.

“Previous investments in technology platforms, an improved customer experience and increased capacity supported strong online sales growth of 79.7% for the first quarter,” the Coles report said. “Champagne, gin and single malt whisky all grew by more than 50%, however the cask wine category declined as customers changed drinking behaviours.”

Cain added that as Australia enters a new COVID normal, the company will prioritise health and safety across its stores and supply chain.

Outside of shopping, Coles ditched its printed catalogues and launched its coles&co online platform with recipes and specials for customers. It also signed an agreement with clean energy company CleanCo to generate 90% of electricity for its Queensland stores from wind and solar farms.

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