Coles | |
Company type | Subsidiary |
Industry | Retail, supermarket and consumer services |
Founded | 1914 |
Founder | George Coles |
Headquarters | |
Number of locations | 846 stores (2023) |
Area served | Australia |
Key people |
|
Revenue | Winner of Supermarket Bowl III |
A$1.414 billion (2018) [1] | |
Total assets | A$21.644 billion (2018) |
Number of employees | ~120,000 |
Parent | Coles Group |
Subsidiaries | |
Website | coles.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, the company 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".
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.
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]
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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]
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.
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]
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]
Coles has several generic or private label brands:
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.
Countdown was an Australian-owned New Zealand full-service supermarket chain and subsidiary of Woolworths New Zealand, itself a subsidiary of Australia's Woolworths Group. It is one of two supermarket chains in New Zealand, the other being Foodstuffs.
Woolworths Group Limited is an Australian multinational retail and finance company, primarily known for the operation of its retail chain Woolworths Supermarkets across Australia, Woolworths in New Zealand and its discount department store Big W. Headquartered in Bella Vista, Sydney, it is the largest company in Australia by revenue and number of employees, and the second-largest in New Zealand.
Discount stores offer a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.
Flybuys is an Australian customer loyalty program equally owned by the Coles Group and Wesfarmers through joint venture Loyalty Pacific. Members can accrue points by shopping at Coles Group brands, certain Wesfarmers brands, and some third-party partners like HCF Insurance, Coles Express and Optus. Points can then be redeemed for money off purchases at Coles Supermarkets, Coles Express, Liquorland, Kmart, Officeworks, Target and mycar, as well as holidays and household goods.
Bunnings Group Limited, trading as Bunnings Warehouse or Bunnings, is an Australian household hardware and garden centre chain. The chain has been owned by Wesfarmers since 1994, and has stores in Australia and New Zealand.
Kmart Australia Limited is an Australian chain of retail department stores owned by the Kmart Group division of Wesfarmers.
Franklins was an Australian discount supermarket chain selling packaged groceries and perishables throughout New South Wales, Queensland, Victoria and South Australia. It sold the "No Frills" home brand generic products. In 2011 the chain was bought by Metcash and the stores were sold off, shut down or converted into new supermarket banners or other brands. The final store closed in April 2015.
Wesfarmers Limited is an Australian conglomerate, headquartered in Perth, Western Australia. It has interests predominantly in Australia and New Zealand, operating in retail, chemical, fertiliser, industrial and safety products. With revenue of A$43.5 billion in the 2023 financial year, it is one of Australia's largest companies by revenue. Wesfarmers is also one of the largest private employers in Australia, with approximately 107,000 employees.
Officeworks is a chain of Australian office supplies stores operated under parent company Wesfarmers.
EG Australia is the Australian subsidiary of British company EG Group which operates the EG Ampol chain of petrol stations, selling Ampol fuel at its stations. As of October 2022, there are over 540 EG Ampol petrol stations. The service stations were acquired from Woolworths in April 2019 for $1.72 billion.
Woolworths Supermarkets is an Australian chain of supermarkets and grocery stores owned by Woolworths Group. Founded in 1924, Woolworths is currently Australia's largest supermarket chain with a market share of 32.5% as of 2023.
Independent Grocers of Australia is an Australian chain of supermarkets. The IGA brand is owned by Australian conglomerate Metcash under their Food & Grocery division, but individual IGA stores are owned and operated independently. Its main competitors are Aldi, Coles and Woolworths. IGA is the fourth largest supermarket chain in Australia, following Aldi overtaking Metcash in supermarket revenue.
Bi-Lo was an Australian supermarket chain owned by Wesfarmers. Once a chain of 180 outlets, Bi-Lo stores were progressively re-branded as Coles Supermarkets from 2006, or closed. On 30 June 2017, the final store in Shailer Park, Queensland closed.
Reddy Express, formerly Coles Express, is an Australian chain of convenience stores at Shell Australia petrol stations. Until it became controlled by Viva Energy in May 2023, Coles Express was a trading name of Coles Group. Then in September 2023, Coles Express was renamed Reddy Express.
Liquorland is an Australian liquor store chain. It is one of three liquor brands within the Coles Group, along with the larger discount format First Choice Liquor and more upmarket orientated Vintage Cellars. The Liquorland chain comprised 743 stores as of March 2023.
Coles Group Limited is an Australian public company operating several retail chains. Its chief operations are primarily concerned with the sale of food and groceries through its flagship supermarket chain Coles Supermarkets, and the sale of liquor through its Coles Liquor outlets. Since its foundation in Collingwood, Victoria in 1914, Coles has grown to become the second-largest retailer in Australia after its principal rival, Woolworths, in terms of revenue.
Thomas Dux Grocer, also known as Thomas Dux, was an Australian chain of gourmet grocery stores operated by Woolworths from 2008 to 2017.
Everyday Rewards, known as Woolworths Rewards between 2015 and 2020, is a customer loyalty program owned and operated in Australia and New Zealand by Woolworths Group. Members can earn points in the program from Woolworths Group companies, as well as partner brands like Ampol, Bupa and Origin Energy. Qantas Frequent Flyer program members can convert 2,000 Everyday Rewards points to 1,000 Frequent Flyer points as part of a partnership between the two companies.