Woolworths and Coles FY26 results, what suppliers should watch out for

Coles and Woolworths will shortly hand down their FY26results on 25 and 26 August respectively.

Regardless of the results, the bigger story is the outlook. Retail sales growth for calendar year 2026 is forecast to slow to just 4%, as interest rate pressures, rising fuel costs and softening employment weigh on household spending.

Against that backdrop, the major grocery retailers can't simply rely on organic category growth to move the needle and are already looking at three areas to protect and grow sales:

1. Adjacent Product Categories

Expect retailers to expand into product categories that have traditionally sat outside the grocery channel. The goal is simple: attract new shoppers and capture a bigger share of wallet from existing ones.

2. Retail Media Income

Expect renewed pressure on suppliers to invest in retailer-specific advertising and promotional vehicles; a high-margin income stream that doesn't rely on shoppers spending more.

3. Bigger Baskets

Get shoppers to add one more item to their basket. In a low-growth environment, small increases in basket size add up; and retailers will be encouraging suppliers to invest more in promotions to make it happen.

If you supply into Coles, Woolworths, Metcash, Aldi or Costco it's worth thinking now about how you can leverage support in these areas for enhanced retail sales outcomes for your brands.

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