Coles says sales volumes improved in the third quarter despite mounting cost-of-living concerns and inflation.

For the 12 weeks to March 26, group sales increased 6.5 per cent to $9.7 billion as consumer hospitality spending and increased immigration drove growth.

Supermarket sales grew 7 per cent to $8.6 billion supported by an expansion of the ‘Dropped & Locked’ value campaign and the commencement of the MasterChef Cookware continuity program.

E-commerce sales increased 2.7 per cent to $662 million partially driven by Click & Collect Rapid sales, contributing 7.5 per cent to all supermarket sales.

The business’ liquor division registered sales of $801 million, up 2.6 per cent driven by e-commerce sales growth of 28.9 per cent (or by $43 million) as well as growth in the retailer’s Exclusive Liquor Brands (ELB) division of 15.2 per cent.

Liquorland was the strongest-performing banner with ready-to-drink a key performing category.

C-store sales from discontinued operations reached $271 million, up by a marginal 0.7 per cent. The Coles Express Fuel business sale to Viva Energy is expected to be completed by the end of May.

“We remain confident that we are well positioned to navigate the current macro environment and deliver trusted value for our customers at a time when many households are experiencing increasing financial pressure,” said the retailer in a statement

The company also opened its first automatic distribution centre in Redbank, Queensland yesterday.

• Further reading: Coles, Uber Eats launch on-demand delivery partnership