(Reuters) -Australia's Coles Group ( CLEGF ) reported a 3.9% rise in first-quarter sales revenue on Thursday, driven by a double-digit growth in e-commerce sales that boosted its supermarket division earnings.

Along with its bigger rival Woolworths, Coles has been actively expanding its range of cost-effective products to lure back value-conscious customers who are on the hunt for bargain deals, powering a 27.9% growth in the latter's e-commerce sales.  

The country's second-largest grocer posted total group sales revenue of A$10.96 billion ($7.12 billion) for the quarter, compared with A$10.55 billion reported a year earlier.

Its supermarkets unit reported a 4.8% rise in quarterly sales revenue to A$9.97 billion. 

($1 = 1.5389 Australian dollars)

(Reporting by Sneha Kumar and Rajasik Mukherjee in Bengaluru; Editing by Anil D'Silva)