Fund Manager Summary
The fund managers believe that the outlook for Coles Group Ltd remains promising, as it has demonstrated strong performance compared to its key competitor, WOW, successfully growing its market share and implementing a competitive own-brand strategy. In their opinion, this positive momentum reflects Coles' ability to adapt and thrive in a competitive landscape. However, Clime Investment Management has decided to leverage the recent share price strength, currently around $16.99, to exit their position on valuation grounds. They see a greater upside potential in WOW, indicating a strategic shift in their investment focus.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Pendal Group
3 Nov 2025
$22.08
Summary
- Pendal Group updates its investment thesis on Coles Group Ltd (COL).
- Coles’ AGM trading update shows Supermarkets sales growth of +4.8% in 1Q26.
- Excluding tobacco, growth is +7%, with momentum continuing into 2Q26.
- Coles is gaining market share from Woolworths (WOW), although the gap narrowed in October.
- Liquor sales are challenging, with like-for-like sales down -1.4%.
- Recent trends indicate a broader market decline and consumer down-trading.
- Overall, the update is solid with supermarkets execution remaining strong.
- Competitive intensity is increasing as the gap with WOW closes.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Pendal Group
3 Nov 2025
$22.08
- Pendal Group updates its investment thesis on Coles Group Ltd (COL).
- Coles’ AGM trading update shows Supermarkets sales growth of +4.8% in 1Q26.
- Excluding tobacco, growth is +7%, with momentum continuing into 2Q26.
- Coles is gaining market share from Woolworths (WOW), although the gap narrowed in October.
- Liquor sales are challenging, with like-for-like sales down -1.4%.
- Recent trends indicate a broader market decline and consumer down-trading.
- Overall, the update is solid with supermarkets execution remaining strong.
- Competitive intensity is increasing as the gap with WOW closes.
Summary
Tyndall Asset Management
31 Aug 2025
$24.08
- Coles (COL) continues to outperform its major peer Woolworths in both sales and margins.
- During the first 8 weeks of the 2026 fiscal year, this trend has continued.
- It appears that COL is better managed.
- Tyndall Asset Management believes COL will continue to deliver better sales in the future.
- Due to considerable fixed costs, superior sales results will translate into far superior profit outcomes.
Summary
Wilson Asset Management
31 Aug 2025
$24.08
- Coles Group is one of Australia’s leading retailers with over 1,800 supermarkets and liquor stores nationwide.
- In August, Coles Group reported strong results driven by margin expansion and robust sales momentum, with July and August sales growth exceeding market expectations.
- The company noted early signs of an improving consumer backdrop, supported by disciplined strategy execution that led to incremental volume growth.
- Earnings growth in FY2026 and beyond is anticipated to benefit from improved returns on supply chain investments and sustained cost efficiencies.
- Enhanced capabilities in online operations and retail media are seen as key drivers of long-term value, allowing for a premium to historical valuations.
- Given Coles Group’s superior execution, the company is well-positioned to command a valuation premium relative to Woolworths Group (ASX: WOW).
- Wilson Asset Management continues to hold Coles Group as a core portfolio holding.
Summary
Tyndall Asset Management
30 June 2025
$20.84
- Tyndall Asset Management continues to hold an investment in Coles Group Ltd (COL) due to its strong operational performance.
- Despite a pullback in June, COL has shown resilience in the market.
- There has been negative news flow regarding price competition in the supermarket sector.
- Data indicates that COL operations are outperforming peers in the industry.
Summary
BKI Investment Company
31 Mar 2025
$19.53
- BKI Investment Company continues to hold its position in Coles Group Ltd (COL).
- Coles has invested over $6 billion in capital expenditure over the past five years.
- The focus of this investment has been on modernizing the supply chain through automated distribution centres (ADCs) and customer fulfillment centres (CFCs).
- This strategic investment aims to enhance efficiency, sustainability, and safety within the distribution network.
- Coles has achieved a 99% fulfillment rate and expanded its product range by 25% compared to typical stores.
- Coles eCommerce has shown strong performance, with sales growth of 22.6% in the first half of FY2025.
Summary
Clime Investment Management
30 June 2024
$16.99
- COL has outperformed its key competitor WOW year-to-date.
- Successful market share growth has been achieved through a competitive own-brand strategy.
- Clime Investment Management is leveraging recent share price strength to exit the position.
- The decision to sell is based on valuation grounds.
- Clime aims to capitalize on stronger share price upside in WOW.
Summary
Clime Investment Management
31 Mar 2024
$16.68
- Clime Investment Management has reduced COL's weight in the portfolio after a strong performance compared to Woolworths.
- COL reported an impressive first half FY24 result.
- COL has demonstrated superior cost control capabilities.
- The company has maintained its gross margin despite challenging market conditions.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
It appears that leveraging Coles Group's recent performance might be a strategic exit, as the market seems to favor WOW's potential upside. Timing the shift could be key in this competitive landscape.
Last Updated: 03 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Coles Group Ltd (ASX:COL)?
Fund managers including Clime Investment Management, BKI Investment Company, Tyndall Asset Management, Wilson Asset Management and Pendal Group have invested in Coles Group Ltd (ASX:COL).
Why do fund managers invest in Coles Group Ltd?
Fund managers invest in Coles Group Ltd due to its strong performance compared to competitors, effective market share growth, and a successful own-brand strategy. However, some are also considering exiting their positions to capitalize on better valuation opportunities in rival companies.
What happened to Coles Group Ltd (ASX:COL)?
Fund managers have invested in Coles Group Ltd due to its strong performance compared to competitors, particularly Woolworths. Coles has consistently delivered superior sales growth and margin expansion, driven by effective management and strategic execution. Recent reports indicate robust sales momentum and improving consumer conditions, which are expected to support earnings growth in the coming years. Additionally, investments in supply chain efficiency and online capabilities are seen as key factors for long-term value, positioning Coles favorably in the retail sector.