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Coles Supermarkets

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This article is about the Australian supermarket chain. For its parent company, see Coles Group.
Coles
Coles
Company typeSubsidiary
IndustryRetail, supermarket and consumer services
Founded1914
FounderGeorge Coles
Headquarters
Hawthorn East, Victoria, Australia
Number of locations
846 stores (2023)
Area served
Australia
Key people
RevenueWinner of Supermarket Bowl III
DecreaseA$1.414 billion (2018)[1]
Total assetsA$21.644 billion (2018)
Number of employees
~120,000
ParentColes Group
Subsidiaries
Websitecoles.com.au

Coles Supermarkets Australia Pty Ltd, doing business as Coles, is an Australian supermarket, retail and consumer services chain, headquartered in Melbourne as part of Coles Group. Founded in 1914 in the suburb of Collingwood by Sir George Coles, Coles currently operates 846[2] supermarkets throughout Australia, including several now re-branded Bi-Lo stores. Coles has over 120,000 employees[2][3] and accounts for around 27 per cent of the Australian market.[4]

Coles Online is the company's online shopping ('click & collect' and home delivery) service.

Between 1986 and 2006, Coles Supermarkets was a brand of Coles Myer, later Coles Group, prior to Wesfarmers purchasing Coles Group in 2007. It became a subsidiary of Coles Group again after Wesfarmers spun-off the business in November 2018.[5]

In 2020, Coles changed its slogan to "Value the Australian way".

History

George Coles learned the retail trade working for his father's 'Coles Store' business from 1910 to 1913. (The store continued operating as "The Original Coles" at Wilmot, Tasmania until it was destroyed by a fire on 24 January 2014.[6]) Coles itself was founded when George Coles opened the Coles Variety Store on 9 April 1914 on Smith Street in the Melbourne suburb of Collingwood. Further expansion occurred and Coles' interest in food retailing was spurred in 1958 when it acquired 54 John Connell Dickins grocery stores. It then acquired the Beilby's chain in South Australia in 1959 and 265 Matthews Thompson grocery stores in New South Wales in 1960.[7]

In 1960, the first supermarket (trading under the Dickins name) was opened in the Melbourne suburb of Balwyn North, at the corner of Burke and Doncaster Roads where a modernised version continues to operate. By 1973, Coles had established stores in all Australian capital cities. From 1962, its supermarkets were branded Coles New World with accompanying Space Age-themed imagery.[8] In 1991, the stores were rebranded Coles Supermarkets and from 1998, simply as Coles.

Coles headquarters site, adjacent to Toorak Road in Hawthorn East, Melbourne

In 2004, the liquor division office (Coles Liquor Group), was moved from Chullora in Sydney to the company head office in Hawthorn East, Melbourne. With Coles Myer CEO John Fletcher citing the move for better efficiency between the food and liquor departments. It also resulted in Craig Watkins (35-year veteran and director of Coles Liquor) retiring from the company.[9]

From mid 2006, many Bi-Lo supermarkets were badged as Coles Supermarkets. Newmart supermarkets, under which Bi-Lo traded in Western Australia, were badged as Coles Supermarkets in 2002–2003. Newmart stores co-located with Coles in the same area or shopping centre were sold to Foodland and re branded as the now-defunct Action Supermarkets chain. The conversion program was put on hold at Easter 2007.[10] In July 2007, Wesfarmers agreed terms to purchase Coles Group for $22 billion. The purchase was completed in early 2008.[11]

In August 2007, as Wesfarmers foreshadowed its plans for the restructuring of Coles Group following its anticipated takeover, it stated that one of three planned divisions would comprise supermarkets, liquor and convenience stores.[12]

From 2008 to 2014, Coles was run by UK retailer Ian McLeod.[13]

In February 2011, Coles acquired National Australia Bank's 50 per cent interest in Australia's largest loyalty program Flybuys, giving it 100% ownership.[14] In September 2011, Coles commenced stocking private-label clothing in its stores with several stores receiving refits to accommodate the range.[15]

In 2018 Wesfarmers announced its intention to demerge the Coles business, seeking to retain only a 20% interest going forward.[16] In 2018, Steven Cain was appointed as CEO of the Coles Supermarket brand as part of the demerger of Coles from Wesfarmers.

Coles deployed its first electric truck in April 2022.[17] The first fully electric delivery vans followed in August 2023.[18]

In April 2023, Coles opened its first Witron-powered automated distribution centre in Redbank, Queensland.[19] In the second half of 2024, two highly-automated 87,000 m2 (940,000 sq ft) customer fulfilment centres powered by Ocado technology were opened in Truganina, Victoria and Wetherill Park, New South Wales.[20][21] A second Witron distribution centre was opened in Kemps Creek, New South Wales in August 2024,[22] and construction of a third in Truganina was announced in October 2024.[23] In the same month, Coles deployed their fully electric prime mover truck.[24]

Advertising and branding

A Coles supermarket in a shopping centre in Warwick, Western Australia
A Coles store in Glenfield Park, New South Wales
A Coles store at a shopping centre in Hawthorn, Victoria
A Coles store in Engadine, New South Wales.

Coles' original slogan was "nothing over 2/6", when it was primarily operating variety stores. The slogan "You'll find the best value is at Coles New World" was used in the 1980s. The red/orange orb was used from 1991 to 2005, although store signs continued to use the orb up until the early 2010s. "Serving you better" was used as a slogan from 1998 to 2003, replaced by "save everyday", endorsed by actress Lisa McCune. A circled tick was used as a logo device from 2003 to 2007, replacing the orb as a primary device in 2005.[citation needed] "Save everyday" was later changed to the grammatically-correct "save every day".[25]

In 2007, the slogan and circle tick were discontinued with simply the Coles name used in preparation for a new red ball logo to match proposed Coles Group livery, which was shelved later in the year as the business was sold. A number of tag lines were employed in the next few years: "Something better every day", "Proudly Australian since 1914" (introduced with its TV sponsorship of the 2008 Summer Olympics),[26] "Cutting the cost of your shopping", "Quality food costs less at Coles" and "It all counts".[27] The slogan "Good things are happening at Coles" was rolled out in 2018, and its current slogan "Value the Australian way" was employed in 2020.

In the 1960s, Coles sponsored a general knowledge quiz show, Coles £3000 Question (later Coles $6000 Question and Coles $7000 Question) which aired on Channel 7.[8]

In 2010, Coles launched a new sub-slogan, "Down Down, Prices Are Down", featuring a large red cartoon hand pointing downwards to symbolise the chain's low price policy. The slogan incorporated the tune of "Down Down", a 1975 hit by British rockers Status Quo.[28] In 2011, the campaign was revised to the fit the tune of Petula Clark's 1964 hit "Downtown".[29] but reverted to "Down Down" later in the year. In 2012, it used Status Quo, which originally recorded the song in 1975, singing and speaking in the newest ad in the series. In February 2016, Coles updated the "Down Down" campaign again, to the tune of That's Amore ("it's a Down Down"). In May 2017 the "Down Down" campaign was again refreshed with Australian Idol and reality TV contestant Casey Donovan with a new disco version of the advertisement.[30] This was ultimately dropped in March 2018, with Coles commercials (mostly on its in-store radio known as Coles Radio) using Best of My Love by The Emotions, a hit disco song from 1977, instead.[31]

Radio

Coles Radio is the brand name for the in-store radio station heard across all Coles' supermarkets. It is owned and operated in partnership with broadcaster Nova Entertainment and adopts a hot adult contemporary format, featuring a playlist consisting of pop hits from the 80s, 90s, 00s and current hits. The station has one announcer, Meg Alexander, throughout the workday from 9am-4pm. The station is also available outside stores via Coles' website, the Nova Player app and on DAB+ digital radio, making it accessible in many newer car models. On the DAB+ platform, it is often the number one station nationally.

Internet retailing

Main article: Coles Online

Accusations of anti-competitive practices

Coles has been accused by suppliers of using heavy-handed tactics when dealing with its suppliers.[32] A 2004 investigation by the Australian Competition & Consumer Commission did not result in any action being brought against Coles and Woolworths. A 2012 investigation in which suppliers were offered anonymity is believed to have uncovered unethical practices.[33] In 2013, the ACCC was investigating both Coles and Woolworths over accusations that they used improper market practices to force down prices from suppliers.[33] These accusations further intensified on a February 2024 episode of news program Four Corners, which exposed accusations of price gouging between both Coles and Woolworths Supermarkets, which form an alleged duopoly colloquially known as Colesworth.[34]

Price gouging and supplier swindling

Coles and Woolworths, the two largest supermarket chains in Australia responsible for controlling over 2/3 of the market share, have recently come under fire on accusations of price gouging. They have also been accused of allegedly forcing suppliers to increase their supplies in order to buy goods at lower prices, during a time which the economy is at the brink of entering a recession and people are facing a cost of living crisis. In a Senate Inquiry,[35] Greens Senator Nick McKim, the chair of the committee, highlighted that the actions of Coles and Woolworths resulted in serious harm to the people of Australia, off the profiteering these supermarket chains have done manipulating food prices. One of the key recommendations that was made in this enquiry is to ensure that price gouging will be made illegal.[36]

A 2014 Federal Court of Australia case ruled that Coles "threatened harm to suppliers if they didn't meet their demands," and ordered the chain to pay $10 million in penalties.[37]

In 2015, the Federal Court of Australia fined Coles $2.5 million for making misleading claims in relation to the sale of its par-baked bread products.[38]

In September 2024, the Australian Competition and Consumer Commission brought legal action against Coles, accusing the supermarket of misleading customers on discounts through their Down Down promotions.[39]

Notable promotions

A Coles Express petrol station
  • 4-cents-per-litre fuel offer: When a customer spends $30 or more in a single transaction at a Coles, Bi-Lo, Pick'n'Pay or Liquorland, they receive a four-cent discount coupon on their receipt or flybuys account for use at Coles Express service stations. This practice has been criticised by competition law experts who argue that people pay higher petrol and grocery prices to fund these discounts.[40]
  • Shoppers can collect flybuys loyalty program points at Coles Group businesses.
  • Between 1991 and 1993, Coles Supermarkets ran a promotion in conjunction with Apple Inc. and 12 major suppliers entitled "Apples for Students", where students collected grocery dockets and returned them to their participating school, and once a certain value had been reached the school would be provided with a free Macintosh computer. Seventy per cent of Australia's schools and kindergartens participated and gained more than 25,000 computers, equipment and software worth $13.6 million.[41]
  • In 2010, Coles Supermarkets ran a similar program called "Sports for Schools" which customers collected coupons to hand in to their school in exchange for sports equipment. The program was run again in 2011, 2012, 2018,[42] and 2020.[43]
  • In 2018, Coles ran a collectibles promotion called Little Shop featuring mini-sized grocery items. Competitor Woolworths stated the success of the promotion led to reduced customer visits to its stores.[44] Due to the success of the campaign, Coles re-invigorated the promotion with the collectables returning for the Christmas period.[45]
  • Coles actively supported the Yes case for the 2023 Australian Indigenous Voice referendum.[46]

Private label brands

Coles has several generic or private label brands:

  • Coles: A mid-price line, replacing the 'You'll love Coles' brand. Designed to match established branded products.
  • Coles Simply: A value brand[47]
  • Coles Finest: A premium brand launched in 2006, with a small range of gourmet foods.[48] Promoted as of greater quality than many well known branded products and often more expensive.
  • Coles Green Choice: A range of household products which claim to be environmentally responsible, with a donation being made to Clean Up Australia with every one of its products sold.
  • Coles Organic: A range of products grown and processed without the use of synthetic chemicals, fertilisers, pesticides or herbicides, approved by official certified organisations.
  • Coles Ultra: A range of higher-end cleaning products above the smart buy range.

In the past Coles had a variety of private labels including Smart Buy, Simply Less,[49] Simply Gluten Free,[50] Savings, Mix,[51] Farmland and Embassy.

See also

References

  1. ^ "2011 Full Year Results" (PDF). Retrieved 18 August 2011.
  2. ^ a b "FY23 Results Release" (PDF). Coles Group. 22 August 2023.
  3. ^ "Red spot special: Coles up for sale". Sydney Morning Herald. 24 February 2007. Retrieved 25 July 2008.
  4. ^ "Looking beyond the panic-buying, Australia's big supermarket story is Aldi's growing market share". Roy Morgan. Retrieved 6 February 2021.
  5. ^ Chau, David (21 November 2018). "Coles debuts with $18b market value; Australian shares tumble after global sell-off". ABC News. Retrieved 21 November 2018.
  6. ^ "North-West store gutted in blaze". The Examiner. 23 January 2014. Retrieved 24 January 2014.
  7. ^ "Coles Myer Limited". Encyclopedia of Business. Retrieved 24 June 2009.
  8. ^ a b "Coles". eMelbourne – The Encyclopaedia of Melbourne Online. Retrieved 7 July 2010.
  9. ^ "Coles Myer re-locate liquor group office to Melbourne". The Age. 10 March 2004. Retrieved 10 June 2016.
  10. ^ "Coles Supermarket Sales Drop". Sydney Morning Herald. 17 May 2007. Retrieved 23 August 2007.
  11. ^ "Coles sold for $22 billion". Herald Sun. 2 July 2007. Archived from the original on 6 July 2007. Retrieved 1 August 2007.
  12. ^ "Wesfarmers plans Coles investment, restructuring". Reuters. 16 August 2007. Retrieved 16 August 2007.
  13. ^ Greenblat, Eli (18 February 2014). "Coles boss Ian McLeod steps down". The Sydney Morning Herald. Retrieved 7 February 2021.
  14. ^ "Coles buys out FlyBuys". Inside Retail. 16 February 2011. Archived from the original on 19 February 2011. Retrieved 16 February 2011.
  15. ^ Collier, Karen (25 August 2011). "Coles fashion line revealed". Herald Sun. Melbourne. Retrieved 7 October 2011.
  16. ^ "Coles is being spun off for what could be a billion less than it was bought for". ABC News. 16 March 2018.
  17. ^ Pattabiraman, Rakshnna (27 April 2022). "Linfox deploys its first electric delivery truck for Coles". Inside FMCG. Retrieved 11 November 2024.
  18. ^ Pattabiraman, Rakshnna (10 August 2023). "Coles adds a fully electric van to its online delivery fleet". Inside FMCG. Retrieved 11 November 2024.
  19. ^ Weber, Kate (27 April 2023). "Coles opens first automated distribution centre". iTnews. Retrieved 11 November 2024.
  20. ^ Settineri, Hailey (22 September 2024). "Coles opens first CFC in Victoria". Retail World Magazine. Retrieved 13 October 2024.
  21. ^ Siddeek, Amaani (11 October 2024). "Coles launches revolutionary customer fulfilment centre in Wetherill Park". Fairfield Advance. Retrieved 13 October 2024.
  22. ^ Crozier, Ry (7 August 2024). "Coles Group opens automated distribution centre in Sydney's west". iTnews. Retrieved 11 November 2024.
  23. ^ Crozier, Ry (31 October 2024). "Coles to build a third automated distribution centre". iTnews. Retrieved 11 November 2024.
  24. ^ Mccleery, Adam (1 November 2024). "Coles adds electric truck to its delivery network". Food & Beverage Industry News. Retrieved 11 November 2024.
  25. ^ admin (13 April 2023). "Latest Coles Catalogue - Discounts & Savings". Finder Hub. Retrieved 18 April 2023.
  26. ^ Downes, Stephen (12 August 2008). "Coles and Red Rooster lead Olympics cash in". Crikey. Archived from the original on 15 April 2009. Retrieved 4 January 2009.
  27. ^ "Plan to replace axed shopping site". The Australian. 29 June 2009. Archived from the original on 6 September 2009. Retrieved 1 July 2009.
  28. ^ "Woolworths sees shake-up in discretionary retail". Business Spectator. 18 April 2011. Retrieved 11 July 2011.
  29. ^ Collier, Karen (6 July 2011). "Coles' annoying 'Down Down' jingle here to stay". Herald-Sun. Retrieved 11 July 2011.
  30. ^ "Casey Donovan latest celeb to front Coles' Down Down campaign". Mumbrella. 3 May 2017.
  31. ^ Dawson, Abigail (6 March 2018). "Coles moves strategy away from 'Down, down' to 'Good things' platform". Mumbrella. Retrieved 10 April 2019.
  32. ^ "ACCC takes action against Coles for alleged unconscionable conduct towards its suppliers". Australian Competition & Consumer Commission. 5 May 2014. Retrieved 17 October 2020.
  33. ^ a b Greenblat, Eli (14 February 2013). "ACCC to investigate Coles and Woolies". SMH. Retrieved 7 May 2013.
  34. ^ The cost of living with Coles and Woolworths | Four Corners. Retrieved 30 March 2024 – via www.youtube.com.
  35. ^ Barrett, Jonathan; Remeikis, Amy (7 May 2024). "Supermarkets inquiry: forcibly break up major retailers in cases of anti-competitive behaviour, report says". the Guardian. Retrieved 24 August 2024.
  36. ^ Barrett, Jonathan (22 August 2023). "Coles posts $1.1bn profit amid grocery price surge and cost-of-living crisis". the Guardian. Retrieved 24 August 2024.
  37. ^ "Coles ordered to pay $11.2 million in penalties, legal fees for mistreating suppliers". ABC News. 22 December 2014.
  38. ^ "BarNet Jade - Find recent Australian legal decisions, judgments, case summaries for legal professionals (Judgments and Decisions Enhanced)".
  39. ^ Barrett, Jonathan; Butler, Josh (23 September 2024). "ACCC sues Coles and Woolworths over allegations of 'illusory' discounts on common products". The Guardian. ISSN 0261-3077. Retrieved 24 September 2024.
  40. ^ Janda, Michael (16 October 2009). "Coles withdraws petrol discount at ACCC's behest". ABC News. Retrieved 10 March 2010.
  41. ^ Noric Dilanchian (24 June 2002). "Developing and Protecting Brands and Trade Marks in Globalising Markets". Intellectual Property: Protection, Enforcement & Commercialisation 4th Annual National Conference, IES Conferences. Archived from the original on 4 September 2007. Retrieved 23 August 2007.
  42. ^ "Sports For Schools".
  43. ^ "Coles Supermarkets". sportsforschools.coles.com.audate=11 August 2011. Archived from the original on 7 September 2011. Retrieved 13 September 2011.
  44. ^ "Woolworths blames plastic bag ban and Coles' Little Shop for drop in sales". Yahoo!7 news. 20 August 2018. Retrieved 11 September 2018.
  45. ^ "Leaked email appears to reveal a limited Christmas edition". NewsComAu. Retrieved 4 December 2018.
  46. ^ "Majority of ASX 20 companies publicly support Voice". Australian Financial Review. 15 June 2023. Retrieved 12 September 2023.
  47. ^ McNamara, Lauren (26 June 2024). "Coles launches budget-friendly 'Simply' range to win back consumer trust". Mumbrella. Retrieved 1 November 2024.
  48. ^ McCubbing, Gus (31 October 2024). "Home brands have had a makeover - and customers love it". Australian Financial Review. Retrieved 1 November 2024.
  49. ^ Chung, Frank (29 March 2016). "Woolworths kills off Homebrand". News.com.au. Retrieved 1 November 2024.
  50. ^ Best, Dean (20 September 2013). "AUS: Coles launches gluten-free own-label range". Just Food. Retrieved 1 November 2024.
  51. ^ Chanthadavong, Aimee (30 August 2011). "Coles mixes groceries with fashion". retailbiz. Retrieved 1 November 2024.
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