Australians are buying cheaper home-brand products and shopping online, but are saving on alcoholic drinks amid ongoing cost-of-living pressures, the country’s second-biggest supermarket chain has revealed.

Coles’ total sales revenue lifted 3.4 per cent for the third quarter of the 2024 financial year, driven by 5.1 per cent growth in supermarkets, a 34.9 per cent lift in online sales and an 8.8 per cent uptick in private label brands. However, liquor revenue slid by 1.9 per cent.

“We know one of the key things that customers do when they’re trying to manage their budget is that they will look to trade into more affordable brands,” Coles chief executive Leah Weckert said on Tuesday.

Revenue growth for home brands (which was 8.8 per cent for the quarter) has outpaced overall supermarket growth for a while now, she explained, as the company expanded its offerings, which now include Coles Finest products and a value range, Coles Simply.

“We’re really seeing customers go at both ends of the spectrum to look for value,” she said.

As customers shop around various supermarkets to get a better deal on their groceries, Coles is looking to compete more closely with German discount supermarket chain Aldi.

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“We know at the moment that there are a lot of customers that are trying out Aldi, and being in a strong position on products that they would compare across the retailers is really important,” Weckert told investors and analysts.

Australians are continuing to cut back on liquor purchases by swapping champagne for prosecco or sparkling wine and choosing more affordable brands of red and white wine. At the same time, many appear to be moving back to beer, which had been experiencing a long-term decline, as it tends to cost less per serve, and gravitating towards canned or ready-to-drink products instead of spirits.