Coles plans to open around 45 new supermarkets in high-growth areas over the next two years, a significant step-up from the 13 grocery stores it opened in 2025/26.
"We love investing in our stores," chief financial officer Charlie Elias told an earnings briefing on Tuesday.
"They are some of the returning assets that we buy - very strong returns on capital."
The company has also marked 150 supermarkets for major refurbishments by June 2028 as part of its $300 million capital expenditure budget.
The renewals will include things like wider aisles for team members fulfilling online shopping orders and added car parking for customers to pick up those orders, which in recent weeks made up nearly one-sixth of Coles' total supermarket sales.
But while Coles is growing its flagship grocery business, it is shrinking its alcohol division.
The grocery giant plans to close 30 of its roughly 980 Liquorland stores in 2026/27, mostly big-box stores trading under the Liquorland Warehouse brand formerly known as First Choice Liquor Market.
Coles's overall sales grew nearly three per cent to $45.6 billion in the 52 weeks to June 28, but its liquor business lagged its grocery stores.
Supermarkets grew sales by 3.7 per cent to $41.5 billion, while sales at its liquor business dropped 3.3 per cent to $3.5 billion.
Still, sales were up at the convenience-focused neighbourhood Liquorland and Liquorland Cellars stores, which make up 90 per cent of Coles' liquor portfolio, as its big-box network mostly struggled.
"The liquor market remains challenging," chief executive Leah Weckert said.
"We have completed a strategic review and have established a clear plan ahead."
The plan involves creating a more integrated food and drink experience and a greater emphasis on supermarket co-locations.
Coles made a net profit of $1.1 billion in 2025/26, up one per cent on the previous year.
But after excluding a $235 million cost related to a court judgment in a Fair Work underpaid wages case, net profit rose a much better 13.7 per cent to $1.3 billion.
The group's underlying earnings - before interest, tax, depreciation and amortisation - rose seven per cent to $4.2 billion.
In the first eight weeks of the new financial year, Coles got off to a good start with sales well ahead of the fourth quarter, but then suffered a "temporary moderation" during rival Woolworths' Ooshies promotion involving squishy Disney figures.
"Following the end of the collectibles campaign, sales recovered quickly, back to levels consistent with the fourth quarter," Ms Weckert said.
RBC Capital Markets analyst Michael Toner said that Coles' results were in line with expectations, but he added that investors might not like the dent in its 2026/27 sales growth from the Woolworths promotion.
Coles shares were up by more than two per cent to 23.17 after midday on Tuesday.
Coles declared a final dividend of 37 cents, taking the total payout for the year to 78 cents, up from 69 cents in 2024/25.
