Coles lifts first-quarter sales, says prices are moderating

The news: Coles Group has lifted its first-quarter sales despite supermarket price growth slowing down, as customers increasingly eat at home to cope with cost of living pressures.

The numbers: The supermarket giant posted a 3.6% increase in sales to $10.3 billion. Its flagship supermarkets business reported a 4.7% lift in revenue to $9.19 billion, while liquor sales increased 1.8%.

The context: The retailer said food and grocery prices continued to moderate during the quarter, giving relief to consumers and household budgets. Total supermarkets price inflation eased to 3.1%, largely due to deflation in the fresh category. However, inflation excluding tobacco and fresh categories remained elevated at 5.7%. Coles separately announced former Telstra CEO Andrew Penn would join its board as non-executive director. He will also assume the role of chair of its audit and risk committee when he takes up the position on 1 December.