Sydney, June 9, 2026, 22:06 AEST
- Coles ended 1.8% higher at A$22.61, ahead of the lagging S&P/ASX 200.
- Consumer staples, the basic goods seen as more stable in downturns, helped balance out losses from mining.
- The rally comes as supermarkets report steady sales, while liquor trading stays weak and pricing-law questions remain unsettled.
Coles Group Ltd gained Tuesday, with investors turning to supermarket stocks for defense as the Australian market reopened after the long weekend and shook off sharp early declines.
Coles shares ended A$0.40 higher at A$22.61, gaining 1.8%. The stock moved between A$22.18 and A$22.75. Coles said volume was 4.1 million shares, with the price last updated at the 4 p.m. ASX close.
ASX shares dipped, but the drop wasn’t as sharp across the wider market. The S&P/ASX 200 slipped 20.9 points, or 0.24%, to 8,604.2. The All Ordinaries lost 31.1 points, or 0.35%, ending at 8,824.8, AAP reported. The benchmark had earlier been down over 1.5% before paring losses.
ASX trading picked up again after being shut Monday for the King’s Birthday, according to the exchange calendar. Miners fell as commodity prices slipped. Consumer staples added 1.5%, with Coles and Woolworths both advancing among grocery stocks.
Rate bets lifted sentiment. NAB Group Economics, with chief economist Sally Auld and Australian economics head Gareth Spence, said it no longer believes the Reserve Bank of Australia will lift rates by 25 basis points in August. A basis point equals one-hundredth of a percentage point. “The next move in the cash rate is likely to be down,” NAB said. But timing is still uncertain, NAB warned. Nabtrade
This is important for Coles since grocery sales often depend on household budgets. If rate expectations fall, mortgage holders could see some relief. Supermarkets like Coles can also draw investors during shifts away from tech or commodity sectors, as some look for more stable earnings.
Coles shares are still moving after the retailer’s May quarterly. The company posted group sales of A$10.70 billion for the third quarter, a 3.1% rise. Supermarket revenue was up 4.0% to A$9.78 billion. Comparable supermarket sales gained 3.6%.
Leah Weckert, chief executive, said it was a “strong sales result” with “disciplined execution”. Online jumped again. Supermarket e-commerce revenue rose 24.8%. Online penetration hit 13.6% of total sales.
Woolworths climbed, helped by the move into staples that also pushed Coles higher. Most of the selling hit miners. AAP reported BHP, Rio Tinto and Fortescue slipped after iron ore and copper prices dropped.
Coles is seeing some weaker areas. Liquor revenue dropped 3.9% to A$781 million in the third quarter. Comparable liquor sales slid 4.3%. The company said trading stays competitive with consumer sentiment getting softer. Coles noted its product supply deal with Viva Energy is set to run out by the end of November 2026.
Legal and pricing risk is in focus, too. In May, a Federal Court ruled Coles misled shoppers after it raised prices and then advertised discounts on hundreds of products. The Australian Competition and Consumer Commission said it plans to seek a big penalty. Vantage Markets analyst Hebe Chen said at the time that investors were pricing in a risk Coles’ “discounting playbook becomes less flexible.” Reuters
Margins are the next thing to watch. Coles said supermarket sales at the start of the fourth quarter are about the same as the third quarter. The company flagged more supplier price-rise requests and higher costs in fuel, freight and packaging. That’s where the defensive pitch gets tough—investors want grocery sales to hold up, but shoppers keep pushing for value.
