Coles reported a soft 1Q27 sales result with Supermarket segment comp sales of 2.7%. Coles decision to invest in price and marketing to restore market share is logical but adds risks. Coles will invest close to $40 million in 2Q27e on our estimates and ongoing price investment will be needed in 2H27e. Even so, Coles ability to restore market share will be held back by Woolworths ongoing improved execution and Aldi may not cede share in 2027. Coles Supermarket EBIT margin of 5.7% in FY26 was a peak in our view and we see it falling to 5.5% in FY27e.