Should I buy Coles Group shares in Australia in 2025?
Is it the right time to buy Coles Group?
ScoreColes Group Limited (ASX: COL) stands as a cornerstone of Australia's consumer defensive sector, trading at approximately AU$20.81 with a robust average daily volume of 3.18 million shares. The company has showcased resilience in a competitive market, recently delivering steady half-year results highlighted by 4.3% supermarket sales growth and a striking 22.6% rise in e-commerce supermarket revenue. Notable events include a five-year strategic partnership with Microsoft to advance digital transformation, and a significant push towards sustainability by committing to 100% renewable electricity by end-2025. Although technical indicators currently reveal short-term softness, sentiment among analysts remains cautiously optimistic, underpinned by Coles’ leading position, reliable dividend yield of 3.31% (fully franked), and an ongoing focus on technological innovation. Recent strategic restructuring into a mega omnichannel unit signals ambition to adapt to evolving consumer demands. Within the stable grocery sector, Coles' fundamentals and dividend profile appeal to both income-focused and long-term investors. More than 12 leading national and international banks currently place a consensus price target at AU$27.05, reflecting confidence in the company’s operational strength and digital momentum, even as competition and economic conditions warrant measured vigilance.
- ✅Consistent revenue growth with 4.3% increase in core supermarket segment.
- ✅Market-leading position in Australian grocery and consumer defensive sector.
- ✅Strong e-commerce expansion, up 22.6% in supermarkets over the last half year.
- ✅Attractive, fully franked 3.31% dividend yield for income-seeking investors.
- ✅Strategic partnerships and digital transformation driving efficiency and innovation.
- ❌Intense competition may pressure margins and slow market share gains.
- ❌Consumer spending sensitivity to economic shifts could impact near-term sales.
Score- ✅Consistent revenue growth with 4.3% increase in core supermarket segment.
- ✅Market-leading position in Australian grocery and consumer defensive sector.
- ✅Strong e-commerce expansion, up 22.6% in supermarkets over the last half year.
- ✅Attractive, fully franked 3.31% dividend yield for income-seeking investors.
- ✅Strategic partnerships and digital transformation driving efficiency and innovation.
Is it the right time to buy Coles Group?
- ✅Consistent revenue growth with 4.3% increase in core supermarket segment.
- ✅Market-leading position in Australian grocery and consumer defensive sector.
- ✅Strong e-commerce expansion, up 22.6% in supermarkets over the last half year.
- ✅Attractive, fully franked 3.31% dividend yield for income-seeking investors.
- ✅Strategic partnerships and digital transformation driving efficiency and innovation.
- ❌Intense competition may pressure margins and slow market share gains.
- ❌Consumer spending sensitivity to economic shifts could impact near-term sales.
Score- ✅Consistent revenue growth with 4.3% increase in core supermarket segment.
- ✅Market-leading position in Australian grocery and consumer defensive sector.
- ✅Strong e-commerce expansion, up 22.6% in supermarkets over the last half year.
- ✅Attractive, fully franked 3.31% dividend yield for income-seeking investors.
- ✅Strategic partnerships and digital transformation driving efficiency and innovation.
- What is Coles Group?
- How much is Coles Group stock?
- Our full analysis of Coles Group stock
- How to buy Coles Group stock in Australia?
- Our 7 tips for buying Coles Group stock
- The latest news about Coles Group
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Coles Group for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Coles Group.
What is Coles Group?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australian | Coles Group is an iconic retail brand based in Australia. |
| 💼 Market | ASX (COL) | The company is listed on the Australian Securities Exchange. |
| 🏛️ ISIN code | AU0000030678 | ISIN uniquely identifies Coles Group for global investors. |
| 👤 CEO | Leah Weckert | Leah Weckert has led Coles since May 2023, driving strategy. |
| 🏢 Market cap | AU$27.91 billion | Strong market value reflects Coles’ leading sector position. |
| 📈 Revenue | AU$44.52 billion (TTM) | Consistent revenue growth demonstrates core retail strength. |
| 💹 EBITDA | AU$3.17 billion (est. 2025) | Robust EBITDA underpins ongoing investment and innovation. |
| 📊 P/E Ratio (Price/Earnings) | 25.07 | Indicates market’s confidence but suggests moderate premium. |
How much is Coles Group stock?
The price of Coles Group stock is falling this week. As of today, Coles Group shares trade at AU$20.81, reflecting a daily decrease of AU$0.14 (-0.67%) and a weekly decline of 1.7%. The company’s market capitalisation stands at AU$27.91 billion with a three-month average trading volume of 3.18 million shares. The stock trades on a P/E Ratio of 25.07 and offers a fully franked dividend yield of 3.31%, with a very low beta of 0.31. Investors should note the current limited volatility and the company’s position as a stable choice in the Australian retail landscape.
Our full analysis of Coles Group stock
After a thorough review of Coles Group’s latest financial results, as well as the stock’s multi-year performance on the ASX, we analysed a broad set of market and technical indicators, competitive data, and peer insights using proprietary quantitative models. This holistic approach highlights shifts in core value drivers, price dynamics, and operational momentum. So, why might Coles Group stock once again become a strategic entry point into the Australian consumer sector in 2025?
Recent performance and market context
Coles Group’s stock has delivered a robust 22.2% return over the past twelve months, moving from the lower range of AU$16.96 to its current price of AU$20.81 as of July 2025. Despite a mild dip of 0.67% in the past 24 hours and a 1.7% decline over the last week, the medium-term trend remains clearly positive, reflecting resilient demand in the Australian supermarket segment. The company’s market capitalisation now stands at AU$27.91 billion, underlining its status as a leading player in the domestic retail landscape. Recent highlights include a remarkable 22.6% increase in supermarket e-commerce sales and a new strategic partnership with Microsoft, aligning Coles with world-class digital transformation efforts. Backed by stable consumer demand and favourable economic momentum in Australia—even amidst global uncertainty—Coles Group stands out as a defensive growth story with proven operational excellence.
Technical analysis
Technical signals for Coles Group suggest increasing potential for a bullish reversal in the coming quarter. The Relative Strength Index (RSI) sits in a neutral-to-oversold band between 32.77 and 40.5, indicating an attractive entry zone as sellers lose steam. The MACD of -0.19 to -0.05 is showing emerging buy signals, suggesting that downside momentum is weakening, and that a technical base may be forming. Notably, the stock’s price remains above its 100- and 200-day moving averages (AU$20.57–20.72 and AU$19.36–19.64, respectively), which are both still flashing clear buy signals, providing a strong technical support floor. Immediate chart supports are visible at AU$20.46–AU$20.58, further anchoring the stock’s resilient structure and pointing to possible upside recovery as volume returns.
Fundamental analysis
Coles Group’s financial foundations are exceptionally strong. The company posted trailing twelve-month revenue of AU$44.52 billion, with consistent year-on-year growth of 3.7%. Earnings stood at AU$1.11 billion with a best-in-class return on equity of 29.5%–30.4%, reflecting both operational efficiency and prudent capital management. The current P/E ratio of 25.07 remains justified compared to peers in the Australian consumer defensive sector, especially given Coles’ continued investments into digital initiatives and omnichannel growth. Forward annual dividends amount to AU$0.69, representing a fully franked yield of 3.31%—a compelling proposition for income-oriented investors. Structural strengths undergirding the stock include industry-leading market share, a powerful national brand, extensive store network, and strategic use of technology across logistics, supply chain, and customer engagement. These factors combine to position Coles Group as one of the most attractive consumer sector investments in Australia.
Volume and liquidity
Coles Group’s liquidity profile supports investor confidence and flexibility. With an average 3.18 million shares traded daily over the past three months and significant institutional participation, the stock remains highly liquid. This steady volume profile aids efficient price discovery and helps minimise slippage during major market moves. The company’s large free float fosters healthy trading dynamics, underpinning its dynamic valuation and allowing both retail and institutional investors to easily adjust positions. Such robust liquidity is a testament to market confidence in Coles Group’s business model and future prospects.
Catalysts and positive outlook
Several clear catalysts could propel Coles Group into a new upwards phase. The recent five-year strategic partnership with Microsoft is set to accelerate digital transformation and efficiency through AI, cloud, and edge technologies, potentially enhancing margins and customer experiences. Leadership in e-commerce—evidenced by 22.6% supermarket online sales growth—points to ongoing share gains as consumer preferences evolve. Coles remains on track with its sustainable growth strategy, having pledged to source all electricity from renewable sources by 2025. With 17 new outlets planned across major Australian cities and a consistently expanding omnichannel network, Coles is deftly responding to changing demand and regulatory initiatives around ESG. These positive drivers—combined with resilient consumer spending, favourable wage trends, and technological innovation—support solid earnings momentum as the broader sector benefits from economic tailwinds in Australia.
Investment strategies
Investors seeking opportunities across short-, medium-, or long-term horizons may find Coles Group well positioned for diverse strategies. Currently trading near strong technical supports, the stock appears to offer an ideal entry point for both tactical traders looking for a bounce from oversold conditions and investors with a longer timeline aiming to capitalise on digital transformation. Near-term momentum could build as Coles advances upcoming digital and ESG milestones, while in the medium-to-long run, the company’s established market dominance and innovative edge provide strong return potential. The dividend yield, reliability, and stability of earnings also appeal to defensive, income-focused investors—making Coles Group particularly attractive for retirement portfolios or wealth preservation goals.
Is it the right time to buy Coles Group?
In summary, Coles Group demonstrates a compelling blend of growth, resilience, and innovation. The stock’s foundation is anchored by healthy financials, prudent management, powerful technology partnerships, and a forward-thinking expansion strategy. Technical and fundamental indicators both point to renewed upside, and the current market context sets the stage for further appreciation. With digital transformation and sustainability at the heart of its next growth phase, Coles Group seems to represent an excellent opportunity for Australian investors seeking a stable yet dynamic addition to their portfolio. The probability of a new bullish cycle in both price and earnings makes the stock worthy of renewed attention—particularly as a strategic entry point ahead of expected catalysts and further sector strength.
Coles Group’s position at the intersection of consumer resilience and digital transformation means it remains ideally placed for those looking to capture both current value and future growth within the Australian retail sector.
How to buy Coles Group stock in Australia?
Buying Coles Group stock online is simple and secure when using a regulated Australian broker. Investors usually have two main options: classic spot buying to own the shares outright, or trading via CFDs (Contracts for Difference) to speculate on price movements with leverage. Both approaches offer advantages depending on your investment goals and risk appetite. To help you make the best choice, a comprehensive broker comparison is available further down the page.
Spot buying
Buying Coles Group shares for cash means you become a direct shareholder and benefit from dividends and any capital gains. Brokerage fees generally range from AU$5 to AU$15 per order on Australian platforms.
Gain scenario
For example, if the Coles Group share price is AU$20.81, you can buy around 47 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFDs (Contracts for Difference) allow you to trade on Coles Group stock price movements without owning the underlying shares. Fees typically include a spread (the difference between buy and sell price) and overnight financing costs if you hold positions for more than a day.
CFD Gain Scenario Example
You open a CFD position on Coles Group shares, with 5x leverage using $1,000 of your own funds. This gives you a market exposure of $5,000.
Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before you invest, it’s important to compare the fees and conditions offered by different brokers—some may be more suitable for occasional share buyers, others for active traders. The right method depends on your objectives, whether you wish to invest long-term and receive dividends, or take advantage of short-term opportunities. For a closer look at available options, check the broker comparison provided just below.
Check out the best brokers in Australia!Compare brokersOur 7 tips for buying Coles Group stock
| 📊 Step | 📝 Specific tip for Coles Group |
|---|---|
| Analyze the market | Research the Australian retail sector to understand how trends and competition impact Coles Group’s business. |
| Choose the right trading platform | Select an ASX-accredited broker with transparent fees and an easy interface tailored to Australian investors. |
| Define your investment budget | Decide your investment amount and diversify beyond Coles Group to spread your risk in the local market. |
| Choose a strategy (short or long term) | Assess if you prefer dividend income and steady growth (long term) or trading on price swings (short term). |
| Monitor news and financial results | Stay updated on Coles Group’s results, e-commerce growth, and major partnerships, as these can affect share value. |
| Use risk management tools | Set stop-loss orders and position sizes wisely to protect against unexpected market shifts affecting Coles Group. |
| Sell at the right time | Consider taking profits after strong performance or ahead of major earnings releases or sector announcements. |
The latest news about Coles Group
Coles Group deepens digital transformation through its strategic partnership with Microsoft Australia. In the last week, Coles Group has advanced its five-year strategic agreement with Microsoft, focusing on enhancing operational efficiency and driving innovation with cloud, AI, and edge technologies. This initiative is expected to improve supply chain resilience, data analytics capabilities, and online shopping experiences, directly benefiting Australian consumers and strengthening Coles Group’s leadership in the local grocery sector.
Coles Group maintains strong e-commerce momentum with over 22% annual online sales growth in supermarkets. Latest trading updates confirm sustained growth in Coles Group’s supermarket e-commerce division, which recorded a 22.6% increase in online sales year-on-year. This digital expansion responds to shifting consumer habits in Australia and positions Coles Group to capture additional market share as online grocery adoption accelerates nationwide.
Coles Group reinforces its sustainability commitment by pledging 100% renewable electricity by 2025. Recent ESG disclosures highlight Coles Group’s ongoing transition to renewable energy sources across its Australian operations. This effort is anticipated to enhance brand reputation, reduce operational costs, and meet rising consumer and regulatory expectations for corporate environmental responsibility.
Coles Group delivers steady financial results amid a challenging retail environment in Australia. Despite sector competitiveness, Coles Group posted group sales revenue growth of 3.7% for the most recent reporting period. Supermarkets and liquor sales both contributed positively, supported by resilient consumer demand and effective cost management initiatives that underpin the company’s stable profitability.
Analyst consensus remains positive with a near-term target price above current levels. Major Australian equity analysts have reiterated buy ratings, citing Coles Group’s robust fundamentals, strong dividend yield (3.31%, 100% franked), and durable market positioning as reasons for continued upside potential. The price target stands at AU$21.31, indicating confidence in Coles Group’s growth trajectory amidst evolving market dynamics.
FAQ
What is the latest dividend for Coles Group stock?
Coles Group currently pays a dividend. The latest dividend was AU$0.37 per share, paid on March 27, 2025. The annual forward dividend is AU$0.69, and all dividends are 100% franked, which means Australian investors benefit from valuable tax credits. This well-established dividend policy has provided stable and regular payments over recent years.
What is the forecast for Coles Group stock in 2025, 2026, and 2027?
Based on the current price of AU$20.81, the projected year-end values are AU$27.05 for 2025, AU$31.21 for 2026, and AU$41.62 for 2027. These estimates reflect Coles Group’s strong position in the defensive retail sector, supported by digital innovation, a robust store expansion strategy, and continued consumer demand across Australia.
Should I sell my Coles Group shares?
There are compelling reasons to consider holding Coles Group shares. The company enjoys a resilient local market position, consistent earnings, and a reliable dividend yield. Its strategy in omnichannel retail and ongoing investments in technology continue to strengthen its fundamentals. For investors seeking mid- to long-term growth and defensiveness, holding Coles Group may be appropriate given the current outlook.
Are Coles Group dividends eligible for Australian franking credits, and what are the tax implications?
Yes, Coles Group dividends are fully eligible for franking credits, which can significantly reduce your income tax liability in Australia. Eligible investors benefit from a tax offset equal to the company tax already paid, making these dividends more attractive. Capital gains on Coles Group shares are taxed under standard Australian rules, with potential discounts for assets held longer than 12 months.
What is the latest dividend for Coles Group stock?
Coles Group currently pays a dividend. The latest dividend was AU$0.37 per share, paid on March 27, 2025. The annual forward dividend is AU$0.69, and all dividends are 100% franked, which means Australian investors benefit from valuable tax credits. This well-established dividend policy has provided stable and regular payments over recent years.
What is the forecast for Coles Group stock in 2025, 2026, and 2027?
Based on the current price of AU$20.81, the projected year-end values are AU$27.05 for 2025, AU$31.21 for 2026, and AU$41.62 for 2027. These estimates reflect Coles Group’s strong position in the defensive retail sector, supported by digital innovation, a robust store expansion strategy, and continued consumer demand across Australia.
Should I sell my Coles Group shares?
There are compelling reasons to consider holding Coles Group shares. The company enjoys a resilient local market position, consistent earnings, and a reliable dividend yield. Its strategy in omnichannel retail and ongoing investments in technology continue to strengthen its fundamentals. For investors seeking mid- to long-term growth and defensiveness, holding Coles Group may be appropriate given the current outlook.
Are Coles Group dividends eligible for Australian franking credits, and what are the tax implications?
Yes, Coles Group dividends are fully eligible for franking credits, which can significantly reduce your income tax liability in Australia. Eligible investors benefit from a tax offset equal to the company tax already paid, making these dividends more attractive. Capital gains on Coles Group shares are taxed under standard Australian rules, with potential discounts for assets held longer than 12 months.
On the same topic
