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Tag: Coles

  • Animals Like Us Rolls into 750 Coles Stores

    Animals Like Us Rolls into 750 Coles Stores

    New Zealand pet nutrition company Animals Like Us rolled its RawMix33 range into more than 750 Coles supermarkets across Australia on October 29. The deal puts the brand directly onto mainstream grocery shelves nationwide alongside an online launch on the grocer’s digital storefront.

    The national rollout covers one-kilogram packs across two formulations: Grain-Fed Beef and Ocean Fish. The shelf-stable line blends 67 per cent high-protein kibble with 33 per cent freeze-dried meat and organ pieces sourced from New Zealand farms and fisheries to meet AAFCO standards.

    Supermarkets squeeze specialty pet chains

    Coles secured the stock after the manufacturer tracked over 100 per cent year-on-year sales growth in Australia through its prior network. The brand previously limited Australian distribution to rival grocer Woolworths and pure-play platform Pet Circle.

    Supermarket operators across the region are taking margin back from independent pet shops and veterinary clinics. Freeze-dried and raw-blend pet feeds once required dedicated trips to specialty retail outlets or temperature-controlled logistics networks. Dry shelf-stable formats let grocers stock high-ticket items in ordinary ambient aisles without investing in floor chillers.

    Traditional pet chains face direct pressure from the shift. When major grocery networks stock high-protein formulations, specialty pet shops lose the frequent basket visits that generate repeat footfall. Coles gains a high-value SKU that lifts register totals, while Animals Like Us secures physical shelf space across hundreds of suburban locations simultaneously.

    Sourcing pressure and execution risks

    The operational risk sits on the supply chain. RawMix33 relies entirely on animal proteins sourced in New Zealand, exposing production schedules to regional livestock slaughter rates, marine catches, and processing plant capacity. Freeze-drying meat requires heavy capital expenditure and precise moisture removal, leaving little slack when retail volume jumps overnight across 750 stores.

    Cost inflation poses another hazard. High-protein dog foods carry retail prices well above legacy cereal-based feeds. Supermarkets are taking on premium inventory at a time when household budgets face persistent inflation, testing shopper willingness to trade up for pet provisions.

    Scaling beyond domestic shores

    Animals Like Us founded its business in New Zealand in 2020. The firm built its base locally before pushing outwards into Australia, the United States, and Canada, using cross-border retail partnerships to test appetite before committing to wide store footprints.

    The immediate test for the manufacturer is maintaining shelf inventory across both Coles and Woolworths as reorder cycles trigger over the coming quarter.

  • Coles Adopts MTick Menopause Label Across 200 Products in Australia

    Coles Adopts MTick Menopause Label Across 200 Products in Australia

    Coles will introduce MTick menopause certification across more than 200 items in Australian stores and online, partnering with advocacy group GenM to standardise product labelling for midlife women.

    The agreement covers food, skincare, personal care and dietary supplements across an Australian market where GenM estimates 4.5 million women currently navigate perimenopause and menopause.

    Implementation begins with an online educational hub before purple MTick identifiers appear on physical shelves and digital storefronts early next year. The accreditation scheme checks products against 48 recognized symptoms of menopause, including sleep disruption, skin alterations, dry eyes, cognitive fatigue and intimate health needs.

    Shelf Signage and Digital Hubs

    Physical stores will install dedicated point-of-sale badging to help consumers spot qualifying inventory quickly during routine grocery trips. Online, Coles will index qualifying lines into dedicated search filters linked to informational guides detailing common physiological transitions.

    GenM manages the certification process, vetting third-party formulations against ingredient standards and consumer testing guidelines before clearing items to display the purple symbol. Brand owners pay verification fees directly to the standard holder to qualify individual product lines for placement.

    The GenM Standard and UK Precedents

    British grocers and pharmacies created the template that Coles is now transplanting into the southern hemisphere. Retailers including Tesco, Asda, Sainsbury’s and health-and-beauty chain Boots already display MTick iconography across an international inventory pool exceeding 4,000 certified stock-keeping units.

    For Australian retail operators, category tagging creates margin opportunities in aisles that historically functioned as low-margin convenience stops. Supermarkets can capture wellness revenue by aggregating high-margin items such as targeted serums, magnesium formulations and sleep supplements into visible health sub-categories.

    Pharmacy Competition and Category Margins

    Pharmacy chains built Australia’s baseline market for dedicated wellness merchandising, leaving grocers to fight for basket share. Community pharmacy group TerryWhite Chemmart previously added MTick shelf tags to recruit shoppers seeking guidance on hormonal health transitions.

    By establishing certified shelf space in high-frequency supermarkets, Coles puts direct commercial pressure on independent pharmacies and banner groups that rely heavily on discretionary personal care sales. Suppliers must now balance slotting allowances and certification audits if they want shelf access in both distribution channels.

    Rollout Schedule and Brand Recruitment

    Health and beauty manufacturers in Australia have spent recent years reformulating private-label and branded ranges to satisfy rising demand for transparent personal care claims. Several local brands secured MTick approval ahead of the supermarket launch to guarantee distribution when shelf changes take effect.

    Coles plans to begin deploying the online resource centre in early 2027, followed by storewide rollouts of shelf tags as certified supplier stock enters its distribution centres.

  • Pryme Snacks Launches Wagyu Jerky Across Coles Nationwide

    Pryme Snacks Launches Wagyu Jerky Across Coles Nationwide

    Pryme Snacks launched its Wagyu jerky across all Coles supermarkets nationwide in October 2026, marking the brand’s largest grocery distribution milestone to date.

    National shelf space across major grocers

    Co-founder Eylon Levy said the Coles agreement transitions the company into a brand with national reach across major retail channels.

    Gaining direct access to major grocery aisles shifts the company from niche distribution to mass consumer volume. Securing national distribution at Coles requires maintaining consistent supply across state distribution centres, testing the company’s manufacturing capacity.

    Expansion through transport and forecourt channels

    The Coles rollout follows a series of retail partnerships secured over the past eighteen months. Pryme Snacks gained entry into forecourt retail through an expansion into Ampol service stations in April.

    Travel retail followed four months later. By August, the company placed its jerky into WHSmith outlets across Australian domestic and international airport terminals, capturing impulse purchases from commuter traffic.

    Competition in premium protein snacking

    Meat snacks face heavy competition in Australian grocery aisles, where legacy brands dominate traditional beef jerky fixtures. Premium lines such as wagyu jerky target shoppers seeking higher-grade protein options, commanding higher price points than standard dried meat products.

    Supermarket placement gives independent snack brands high product visibility, but sustaining shelf allocation requires rapid stock turnover. Coles regularly reviews category sales rates, putting pressure on emerging producers to drive consumer uptake without eroding margin through heavy discounting.

    Distribution track record across Australia

    Pryme Snacks began building its wholesale footprint last year through distribution agreements with Metcash, which supplies independent grocers and the IGA network. That base provided the logistics foundation required before pitching national supermarket chains.

    With Coles stores now stocked, inventory turnover rates over the final trading quarter will determine whether the brand secures permanent ranged space and shelf extensions across the category.

  • Coles Explores In-Store Robots with Ocado to Speed Online Delivery

    Coles Explores In-Store Robots with Ocado to Speed Online Delivery

    Coles is in early talks with UK-based Ocado Group to explore in-store robotics for picking and packing online grocery orders, aiming to cut costs and speed up delivery times.

    The potential technology trial would help the retailer fulfil express orders directly from store aisles without investing in another large automated warehouse.

    Shifting Automation to the Shop Floor

    Under the proposed trial, robotic systems would operate inside existing stores, building on the companies’ first Customer Fulfilment Centre opened in Victoria in 2024 following a partnership established in March 2019. Deploying automated micro-fulfilment in active supermarkets allows the grocer to serve dense urban pockets where large distribution facilities are either too distant or too expensive to construct.

    Ocado’s store-level technology is designed to operate in tighter operational spaces than the vast grid systems seen in regional depots. For Coles, integrating robotics into physical retail sites represents an operational shift from standalone logistics infrastructure toward hybrid retail facilities that double as mini-fulfilment centres.

    Read Across to Regional Operators

    Supermarket operators across the Asia-Pacific region face intense pressure to solve the unit economics of instant and same-day delivery. Building multi-million-dollar automated distribution centres works well for scheduled, bulk grocery deliveries across wide metropolitan areas, but it fails on speed and margins when customers demand baskets within two hours. Rival Woolworths has already experimented with automated micro-fulfilment units attached to retail sites to tackle this exact constraint.

    For property operators and grocery suppliers, store-level automation changes shelf stocking workflows and backroom inventory allocations. The primary risk sits in execution: retrofitting operational supermarkets with robotic machinery often disrupts walk-in shoppers and complicates inventory replenishment during peak trading hours. If the integration falters, picking errors and foot-traffic bottlenecks will quickly erode the projected labour savings.

    The Long Partnership Timeline

    Coles and Ocado formed their strategic partnership in March 2019 to overhaul the retailer’s digital supply chain. That agreement centred on building large automated Customer Fulfilment Centres, leading to the launch of their first operational CFC in Victoria in 2024. The new discussions reflect an evolution of that multi-year agreement from centralised mega-hubs toward flexible, localized picking nodes.

    Next Steps in the Rollout

    Both companies are assessing store layouts and integration schedules to determine which locations will host the initial trials. Market watchers will track the formal sign-off on the pilot program and the subsequent cost disclosures in upcoming operational updates.

  • PopBox Introduces Caramel Crunch Microwave Popcorn in Coles

    PopBox Introduces Caramel Crunch Microwave Popcorn in Coles

    PopBox secured nationwide distribution for its Caramel Crunch microwave popcorn in Coles supermarkets across Australia in October 2026.

    The rollout broadens the brand’s retail presence, adding to its existing availability at Woolworths.

    Ranging and Formulation Details

    Caramel Crunch comes in a pop-and-serve box designed to cook in the microwave without separate tableware. PopBox sources its corn domestically from Australian growers. The formulation contains no palm oil, dairy, or gluten.

    Production specifications also exclude genetically modified ingredients, making the SKU vegan-friendly. Both the outer carton and inner pack elements use recyclable materials.

    Supermarket Snacking Competition

    Dual distribution across Coles and Woolworths gives emerging snack brands the footprint needed to challenge legacy competitors. In the microwave popcorn aisle, volume has traditionally centered on butter and salt profiles. Sweet and specialty flavors have largely remained in pre-popped ready-to-eat bags.

    PopBox is targeting impulse snackers looking for warm options without artificial additives. Retaining shelf space will depend on stock turn rates against multinational confectionery and snack suppliers that dominate supermarket end-caps.

    Dual-Chain Distribution Footprint

    This Coles rollout follows the brand’s initial traction within Woolworths outlets nationwide. Independent snack manufacturers often launch in one major banner to prove commercial viability before pitching ranging reviews at competing grocers.

    With nationwide distribution now live in Coles aisles, the next test is whether PopBox can maintain full-price sell-through or will rely heavily on promotional discounting cycles during upcoming quarterly category reviews.

  • Pesticide Action Australia Tests 78 Supermarket Produce Samples Across Five Cities

    Pesticide Action Australia Tests 78 Supermarket Produce Samples Across Five Cities

    Pesticide Action Australia tested 78 fruit and vegetable samples from Aldi, Coles and Woolworths across five cities. The group examined chemical residue levels across major grocery supply chains.

    Fresh produce sold by Australia’s three dominant supermarket operators was targeted to review compliance standards across the commercial food network.

    Independent testing across major grocers

    Pesticide Action Australia bought the 78 fresh produce samples in June and submitted them to an accredited laboratory for residue screening. Everyday produce lines were sourced directly from retail shelves in five metropolitan markets to compare items across corporate supermarket networks.

    The assessment tracks how national retail supply chains monitor chemical usage from farm gate to supermarket shelf. It examines the performance of growers, commercial compliance auditors, statutory regulators and retail category buyers responsible for inventory safety.

    Scrutiny on supermarket fresh supply chains

    Supermarket chains in Australia handle most domestic fresh produce distribution through direct grower contracts and central distribution hubs. Coles and Woolworths control the bulk of national grocery volume. Aldi maintains a network of contracted fresh suppliers.

    Quality assurance programs across these chains rely on third-party certifications and vendor declarations. Independent testing that finds variances between supplier paperwork and product chemistry forces retailers to tighten inbound audit protocols at distribution centres.

    Commercial pressures on growers and retailers

    Fresh produce procurement operates on narrow gross margins, tight delivery windows and strict visual presentation benchmarks. Retail buyers set rigorous specifications for appearance and shelf life. This puts pressure on farms to manage pests and spoilage aggressively throughout the growing cycle.

    Retailers carry the brand risk when chemical residue questions enter the public domain. Primary producers manage crop spraying schedules and withholding periods, but consumer-facing grocers face reputational exposure if auditing frameworks fail to verify compliance before stock reaches store displays.

    Auditing frameworks across Asia-Pacific

    Regulatory scrutiny over food safety standards has intensified across Asia-Pacific supply chains. Institutional procurement teams demand transparent farm-level tracking. Retailers across the region have expanded farm-gate testing requirements and reduced reliance on self-certified grower declarations.

    Grocers in developed markets increasingly require contracted growers to register chemical applications through digital compliance systems. These platforms track chemical volumes, application dates and mandatory pre-harvest intervals to ensure finished produce meets statutory maximum residue limits prior to distribution.

    Next compliance checkpoints

    Supermarket quality assurance teams are reviewing supplier audit data ahead of the peak summer fresh produce harvest. Retail compliance divisions continue evaluating independent residue findings alongside state food authority monitoring programs across national supply networks.

  • Coles and Woolworths Commit $4 Billion to Automated Warehouse Networks

    Coles and Woolworths Commit $4 Billion to Automated Warehouse Networks

    Coles and Woolworths are each investing roughly $2 billion in supply chain infrastructure, automation and warehouse technology through 2030.

    That combined $4 billion outlay targets Australia’s FMCG distribution networks. Supermarkets face higher labour expenses, rising online fulfilment volumes and tighter delivery windows.

    Contrasting national distribution networks

    Australia’s top two grocers are taking opposite paths to handle volume growth. Woolworths built a central national distribution centre in Sydney to funnel selected stock across the country. It also runs secondary state-based distribution hubs for regional replenishment. Coles relies on a decentralised model. It stocks nearly every product line inside regional distribution centres in each state.

    Both approaches use automated systems to accelerate stock handling inside distribution hubs. Automated pallet-building creates denser loads that increase trailer capacity and cut unloading times at supermarket docks. Moving stock faster also trims balance-sheet inventory needed to avoid out-of-stock notices.

    Tighter operational pressure on suppliers

    Speed inside supermarket networks pushes new demands onto packaged goods manufacturers. Food and beverage producers running multi-facility transport routes across Queensland and New South Wales must align truck dispatches with exact dock schedules. Late arrivals or incorrectly built pallets trigger immediate bottlenecks at automated intake systems.

    Smaller suppliers face harsher commercial risks. Lacking the capital to build automated facilities, smaller brands rely on local third-party logistics providers with systems still in early development. To protect shelf space against multinational manufacturers, suppliers must maintain consistent fulfilment rates while defending margins against automated price comparisons.

    Integration delays and capital risks

    Major automation projects carry severe execution risks that inflate operating costs if integration falters. One Australian retailer spent nearly three years linking warehouse management software with multiple hardware vendors. Those delays forced the company to pick online grocery orders directly from store aisles for 12 months. That approach pushed fulfillment costs per order to nearly double the expense of automated distribution.

    Swings in consumer demand and interest rates also threaten capital allocation models. Retailers expanding warehouse footprints during e-commerce spikes risk carrying expensive, unused capacity if shopping volumes soften. Online apparel seller Asos ran into that problem after adding North American distribution sites during earlier e-commerce surges. Holding billions of dollars in debt-financed logistics assets leaves retailers exposed when financing costs climb.

    System integration targets ahead of 2030

    Grocers are testing new hardware iterations and warehouse software across their existing state facilities. Supply chain directors must stress-test intake throughput against volume projections 50 per cent above base targets. They must also ensure operations remain viable if demand drops to half of long-term forecasts.

    The performance split between these two logistics designs will widen as Coles and Woolworths bring additional automated facilities online ahead of their 2030 capital deployment deadlines.

  • Hello Jello Secures $2 Million Coles Deal for Nationwide Launch

    Hello Jello Secures $2 Million Coles Deal for Nationwide Launch

    Australian jelly brand Hello Jello has entered supermarkets nationwide with a better-for-you jelly range after securing a $2 million retail deal with Coles in October 2026.

    The initial retail lineup includes four fruit varieties: raspberry, pineapple, strawberry, and lime.

    Formulation and product specifications

    Founded in Melbourne by Jacqui Roth and Eliza Wallish, the brand enters the packaged dessert aisle with 22-gram sachets of jelly crystals. The lineup includes raspberry, pineapple, strawberry, and lime varieties.

    Each serving delivers 3.7 grams of protein and less than 1 gram of sugar. Sweetness comes from thaumatin, a plant-derived protein extracted from katemfe fruit, allowing the formulation to avoid synthetic sweeteners, artificial colourings, synthetic flavourings, and added sulphites.

    Supermarket shelf space economics

    Securing national distribution with Coles gives early-stage food ventures immediate scale, but retail execution demands tight working capital controls. Upfront shelf commitments across hundreds of stores require manufacturers to maintain consistent supply chain reliability without sacrificing batch margins.

    For major grocers, adding niche clean-label products creates basket differentiation against discount rivals. The commercial pressure now falls on unit turnover speed, where low-sugar alternatives must prove they can match traditional high-sugar volume leaders in weekly category revenue.

    Competition in packaged desserts

    Australia’s shelf-stable dessert category has long remained dominated by legacy sugar-heavy brands and private-label entries sold primarily on price. Upstart brands targeting ingredient-conscious shoppers must justify higher unit prices through functional nutrition claims and natural ingredient sourcing.

    Suppliers competing in this segment face rising raw ingredient costs for specialty natural sweeteners compared to commodity refined sugar. Sustaining shelf placement against established confectionery conglomerates requires steady repeat purchase rates from family households.

    Distribution rollout and sales milestones

    Roth and Wallish developed the concept after seeking packaged treats that eliminated artificial additives while keeping full flavour profiles for household consumption. The resulting retail rollout gives the business direct access to metropolitan and regional shoppers across every state.

    Initial stock allocations are now moving through Coles distribution centres to stock retail shelves across the country. Category managers will track the four-flavour range over the coming quarters to measure initial scan rates against standard confectionery and dessert benchmarks.

  • Exotic Bazaar Expands Middle Eastern Food Range into Coles

    Exotic Bazaar Expands Middle Eastern Food Range into Coles

    In October 2026, Australian food producer Exotic Bazaar secured retail distribution across Coles supermarkets, moving its packaged Persian and Middle Eastern meal bases from regional farmers markets to national grocery aisles.

    The listing gives the Ballarat-founded brand access to millions of weekly supermarket shoppers across Australia.

    Founded by Gilava Pour, Exotic Bazaar produces recipe bases, spice blends and simmer sauces designed to simplify Middle Eastern home cooking. The range includes items such as Tunisian shakshuka bases and traditional Persian meal mixes, targeting consumers who want authentic flavours without sourcing hard-to-find individual spices.

    From Ballarat market stalls to national retail shelves

    The business started by selling directly to consumers at weekend community markets in regional Victoria before building a digital storefront. Growing demand for international pantry staples and convenience cooking drove the brand to expand its wholesale operations, leading to discussions with major supermarket buyers.

    Supermarket operators across the Asia-Pacific region are allocating more shelf space to regional ethnic cuisines as consumer palates diversify. For Coles, adding independent artisan brands helps differentiate its packaged grocery aisles against rival Woolworths and discount chains like Aldi.

    Managing supermarket supply chain pressure

    Transitioning from direct-to-consumer sales to a major grocery chain changes inventory management and cash flow requirements. Fulfilling regular purchase orders for national distribution centres requires strict quality controls, continuous batch manufacturing and reliable freight partners.

    Exotic Bazaar handles e-commerce dispatches from Melbourne alongside its wholesale supply chain. The company pairs retail sales with online recipe resources, including digital guides for dishes like Persian noodle soup, to encourage repeat pantry purchases.

    Pantry demand shifts toward global flavours

    Mainstream grocers historically relegated Middle Eastern ingredients to specialty aisles or small international sections. Mainline shelf placement alongside everyday sauces and cooking bases reflects a broader shift in Australian home cooking habits.

    Suppliers in the specialty food sector face rising packaging costs and ingredient price pressures. Maintaining grocery margins requires steady sales velocity per store, placing the commercial focus squarely on customer retention and shelf turnover.

    Exotic Bazaar continues to dispatch direct orders from Melbourne while monitoring store-level scan rates across the Coles supermarket network.

  • Only 50% of Australian Loyalty Program Members Actively Use Accounts

    Only 50% of Australian Loyalty Program Members Actively Use Accounts

    A record 93 per cent of Australian consumers hold loyalty memberships, but only 50 per cent actively used all their cards over the past 12 months, according to a 2026 survey by consultancy The Point of Loyalty.

    The Australian loyalty program market is expanding by 13.5 per cent annually toward a valuation of $1.57 billion in 2026, as rising living costs push shoppers to seek savings.

    The Scale of Inactive Accounts

    A survey of more than 800 customers across Coles, Woolworths, Aldi, IGA and FoodWorks by Edith Cowan University researchers examined why consumers join retail reward programs only to neglect them.

    Researchers Sanjit K Roy and Saalem Sadeque from Edith Cowan University found financial rewards alone fail to retain active users. Fatigue sets in quickly when redemption rules require high baseline spend, such as outlays of $2,000 to earn a $10 voucher. Shoppers abandon programs that demand excessive tracking or complicated checkout app interactions.

    Supermarket Duopoly Dominance

    Two major operators control most of the domestic membership base. Woolworths counts 14 million registered accounts in its Everyday Rewards network. Coles reports more than 9 million active members in Flybuys, which links grocery baskets with Wesfarmers-owned chains including Bunnings, Kmart and Target.

    For retail operators across the Asia-Pacific region, these enrolment numbers look impressive on paper but mask balance sheet liabilities. Unredeemed points sit as deferred revenue obligations. Inactive accounts generate zero incremental basket value. Rivals that rely on upfront shelf discounting, such as ALDI, continue to capture price-sensitive volume without funding complex points administration.

    Trust and Data Exchange

    Shoppers surrender personal details, contact lists and payment patterns in exchange for program benefits. When retail pricing feels opaque or discounts appear trivial, participation drops immediately.

    The university study identified three distinct operational levers that dictate whether a member remains active: institutional trust, relationship commitment and clearly visible return value. Programs that fail to send targeted offers lose out to straightforward discount mechanics. High-frequency users expect direct discounts on regular purchases rather than generic promotions on slow-moving inventory.

    Friction in Reward Redemption

    Security concerns also weigh on consumer willingness to maintain secondary retail memberships. Major corporate data breaches across Australia over recent years raised shopper scrutiny regarding who stores their purchase histories and contact records.

    Competition will test whether broad coalition ecosystems hold an advantage over single-banner apps. Flybuys relies on cross-category earning power across home improvement and department store networks to keep accounts active. Woolworths counters by integrating fuel, insurance and pharmacy tie-ins directly into its digital wallet ecosystem.

    Supermarket executives will watch the active redemption rate per registered member as annual retail data filings land later this year.

  • Sixty-One per Cent of Shoppers Use AI for Grocery Decisions, EY Finds

    Sixty-One per Cent of Shoppers Use AI for Grocery Decisions, EY Finds

    Sixty-one per cent of respondents have used artificial intelligence to help make grocery decisions, according to a report released by EY in September 2026.

    The study, titled What Happens When Shoppers No Longer Do the Shopping?, found that almost half of surveyed consumers would likely use a tool that reliably sourced their usual basket across several supermarkets, though only 17 per cent were very likely to do so.

    Richard Rome, associate director for consumer industry at EY, examined whether shoppers would allow an AI assistant to plan, compare and purchase groceries, noting that the shift represents a more human-centric model with less human touch rather than humanless shopping.

    What Drives Automated Basket Decisions

    Cost reduction remains the main hurdle before consumers surrender control of their shopping carts. EY found that 40 per cent of respondents demand clear financial savings on their total grocery bill before delegating purchases to an automated system.

    Time savings offer a faster route to practical adoption. Fifty-eight per cent of shoppers said they would hand over an online order if software saved them up to 30 minutes a week, while 47 per cent would do so for trips to physical stores. Another 25 per cent pointed to practical assistance with dietary rules, label verification, health goals and ethical sourcing as sufficient incentive to use automated tools.

    Families Lead Early Adoption Rates

    Younger households with children show the highest appetite for delegating routine shopping chores. In the EY data, 70 per cent of families with children under 18 ranked as potential early adopters, followed closely by consumers aged between 18 and 34, full-time workers and higher-income earners.

    The concentration among busy households points to an immediate opportunity for automated replenishment tools. Consumers with packed schedules want to eliminate the mental friction of tracking household staples, checking ingredient lists and comparing pack sizes across multiple store apps.

    Why Supermarkets Face Platform Risk

    Retail incumbents such as Woolworths and Coles face a structural shift if third-party software takes over product discovery. When an independent algorithm chooses brands based on unit price or nutritional parameters, traditional investments in eye-level shelf placement, endcap displays and on-site search advertising lose their pull.

    Trust in automated shopping requires tools to remain entirely neutral between competing retail chains. Software created by a single supermarket chain restricts the selection pool, opening the door for price comparison portals, payment platforms, meal planners and standalone AI applications to capture the customer relationship instead.

    How Suppliers Must Structure Product Data

    Packaged goods manufacturers now need clean, machine-readable specifications to ensure autonomous agents select their items. If an algorithm filters out products lacking explicit dietary tags, standardized ingredient data or clear unit pricing, those products drop out of the basket before a human ever sees them.

    The research builds on earlier consumer shifts across Asia-Pacific toward algorithmic grocery planning and quick-commerce meal kits. Richard Rome, associate director for consumer industry at EY, will present detailed data from the report during an Australian Food & Grocery Council webinar on October 28.

  • Tokyo Tatemono and UBS Back A$1.2B Charter Hall Logistics Venture

    Tokyo Tatemono and UBS Back A$1.2B Charter Hall Logistics Venture

    Charter Hall has set up an Australian logistics vehicle with Tokyo Tatemono and UBS Asset Management targeting an end value of A$1.2 billion ($859.3 million). The seed portfolio covers 335,000 square metres of east coast warehousing. Long-term leases to major grocery and beverage operators back the assets.

    Known as Charter Hall Industrial Partnership 5, the vehicle holds six industrial properties transferred mostly from the manager’s A$14.3 billion Charter Hall Prime Industrial Fund. Supermarket chains Coles and ALDI anchor the sites alongside Coca-Cola. These tenants secure immediate cash flow from essential consumer supply chains.

    The deal is Tokyo Tatemono’s initial entry into Australian logistics and its first direct venture with Charter Hall. Under its fiscal 2025 to 2027 plan, the Japanese property group allocated JPY 110 billion ($687.1 million) for overseas deployments. This partnership is its fourth commercial commitment in Australia.

    East coast assets and tenant footprint

    In Sydney, the portfolio holds three single-storey buildings in Wetherill Park, roughly 32 kilometres west of the central business district. Charter Hall completed the facilities in 2023 following a 2020 commitment by Coles. The site spans 142,599 square metres and delivers 73,835 square metres of net lettable area. Coles leases the whole complex for online fulfilment.

    Two established distribution centres make up the Queensland holdings. The first is a 71,670 square-metre facility in Brendale, 22 kilometres north of Brisbane, on a 185,500 square-metre plot. ALDI occupies the entire site after agreeing to a long-term lease expansion earlier this year. The second is a 79,261 square-metre warehouse on a 249,000 square-metre parcel in Richlands. It was built in 1993, expanded in 2017, and is leased entirely to Coca-Cola.

    Melbourne hosts the portfolio’s development component in Dandenong South, 31 kilometres from the city centre. The project will yield four single-storey warehouses with 110,943 square metres of net lettable area. It adds capacity to Melbourne’s tight outer-east market.

    Capital shifts across Asia-Pacific logistics

    Japanese developers and institutional asset managers continue redirecting balance sheet capital into developed Asia-Pacific logistics hubs. Yield spreads in Australia remain wide compared to domestic Japanese debt costs. This gap encourages groups like Tokyo Tatemono to take equity positions alongside local managers rather than building operational teams from scratch.

    Wholesale partnerships offer Australian landlords and retail tenants fresh development equity as traditional bank financing faces tighter underwriting constraints. Partnerships tied to grocery and beverage tenants reduce vacancy risks for offshore investors. At the same time, they fund dedicated fulfilment centres for major supermarket chains.

    Charter Hall expands wholesale partnerships

    This transaction broadens Charter Hall’s institutional roster and extends operational ties with UBS Asset Management into direct logistics ownership. Demand for modern warehousing across Australia’s eastern seaboard is up sharply. Leasing data from CBRE shows net industrial take-up surpassed 1.4 million square metres during the first half of 2026. That is more than double the volume recorded in the previous six months.

    Earlier this month, Charter Hall spent A$192.4 million on three logistics properties southwest of Brisbane for a parallel vehicle, Charter Hall Industrial Partnership 6. Those assets feed into an under-construction A$350 million industrial precinct near Darra, about 20 kilometres from central Brisbane.

    Timelines and next development milestones

    Past Australian projects for Tokyo Tatemono include a 25-unit residential build in Sydney’s Crows Nest and two suburban warehouse projects near Sydney. It also holds a build-to-rent residential development at 899 Collins Street in Melbourne.

    Australia’s industrial and logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers.

    Work on the Dandenong South logistics estate in Melbourne begins in 2026, with staged handovers running through 2030. Charter Hall and its partners will also start planned expansion work at the Brendale distribution facility before the end of this financial year.

  • Coles Opens Its First Fully Electric Supermarket in Melbourne

    Coles Opens Its First Fully Electric Supermarket in Melbourne

    In September 2026, Coles opened its first fully electric supermarket at Orana Village in Clyde, Melbourne. The site eliminates on-site fossil fuels through a 270-kilowatt rooftop solar array and battery storage.

    Its rooftop holds 487 solar panels. These connect to a 110-kilowatt, 225-kilowatt-hour battery energy storage system that powers daily operations and backs up essential services during outages.

    How the Store Runs Without Gas

    Natural gas is gone from the site. Electric heat pumps link directly to a natural carbon dioxide refrigeration system. This setup captures waste heat from chilled cabinets and feeds it into climate control, delivering 171 kilowatts of heating capacity alongside full LED lighting fixtures.

    Drivers have access to four on-site fast-charging bays delivering up to 200 kilowatts direct current via Evie Networks. These chargers connect straight to the battery storage system. That buffer smooths power spikes when multiple electric vehicles draw high current during peak shopping hours.

    Origin Energy developed the on-site battery as an on-market backup unit. When checkouts and lighting do not require reserve power, the battery feeds capacity into Origin’s virtual power plant. That allows power trading on the wholesale electricity market.

    The Operational Read-Across for Retail Landlords

    Pressure is mounting on supermarket operators across Australia and Southeast Asia to remove direct gas connections from standalone shopping centres and strip developments. Coles expects the Clyde installation to reduce electricity drawn from the grid by up to 25 per cent. That drop eases baseline utility overheads in high-tariff energy markets.

    Property owners face distinct physical and capital hurdles if they copy this layout. Rooftop structures must support heavy panel arrays. Battery containment also demands dedicated exterior real estate and specialised fire suppression infrastructure. Landlords negotiating new leases with national grocers will need to absorb shared electrification costs during base-building stages.

    The Rollout Plan Through 2029

    Following the Clyde commissioning, Coles and Origin Energy extended their renewable energy partnership for another three years to 2029. Under the expanded agreement, Origin will install an additional 15 megawatts of rooftop solar capacity across up to 75 stores. It will also add 15 megawatt-hours of battery storage across up to 20 locations.

    Orana Village gives us a blueprint for what a lower emissions and more resilient store network could look like.

    Work on the initial phase began in 2023, delivering 16.45 megawatts of solar capacity across 73 stores and distribution centres, alongside 1.35 megawatt-hours of battery storage across five sites. Across participating locations, the combined systems cut grid electricity demand by an average of almost 20 per cent.

    Grid Exposure and Capital Allocation

    This project ties into the retailer’s plan to reach net-zero operational emissions by 2050. At the close of financial year 2026, Coles reported an 82.6 per cent reduction in combined Scope 1 and Scope 2 greenhouse gas emissions compared with its 2020 baseline. That progress rests on national power purchase contracts covering its network of more than 1,800 outlets and logistics facilities.

    Rivals Woolworths and Aldi have similarly contracted renewable power for their store fleets while introducing electric freight trucks. Attention now turns to whether savings from heat recovery and peak-demand management justify the upfront capital cost of retrofitting older, leasehold supermarkets before the 2029 rollout deadline.

  • Woolworths and Coles Control 67% of Supermarket Sales, ACCC Finds

    Woolworths and Coles Control 67% of Supermarket Sales, ACCC Finds

    Independent grocery operators across Australia are capturing cross-shopping trade from Woolworths and Coles as the two dominant chains control around 67 per cent of national supermarket retail sales.

    Findings from the Australian Competition and Consumer Commission (ACCC) 2024-25 Supermarkets Inquiry reveal that nearly 70 per cent of consumers visit two or three grocery stores in a typical week to save money or seek out different products. The watchdog concluded that the two major supermarket groups offer largely undifferentiated ranges, pricing and promotions across their store networks.

    Scale Across Independent Networks

    Alternative grocery models in Australia are expanding by differentiating their assortments rather than competing purely on nationwide standardisation. The IGA banner now spans more than 1,200 independently owned supermarkets, operating under family ownership structures such as the three-generation Xyrakis family store in Canberra and the D’Anna family’s Boccaccio IGA in Balwyn.

    Regional fresh food specialist Harris Farm has expanded to 33 stores across New South Wales and Queensland since starting in Villawood in 1971. The family-owned grocer rolled out a delivery partnership with Amazon this year, distributing fresh produce on same-day and next-day delivery schedules across Sydney, Brisbane, the Gold Coast, Canberra and Newcastle.

    Operational Focus Over Duopoly Formats

    For suppliers and property owners across Asia-Pacific retail corridors, the Australian grocery structure demonstrates that high market concentration creates clear openings for agile specialty chains. Large grocers operating rigid supply contracts struggle to curate hyper-local merchandise, leaving regional producers to build volume through independent distribution channels.

    Landlords face shifted leasing economics as shoppers intentionally bypass generic anchor supermarkets in favour of destination fresh-market operators. The financial risk shifts toward mid-tier commercial centres that rely exclusively on duopoly supermarket foot traffic without distinctive secondary food anchors to keep dwell times up.

    Earlier Contractions and Format Shifts

    Format discipline has driven turnarounds elsewhere in the Australian consumer sector after earlier overexpansion. Starbucks entered the Australian market in 2000 and shuttered 61 stores in 2008 to leave 23 sites, before rebuilding its footprint around drive-through convenience and mobile ordering to post its first Australian annual profit in financial year 2023.

    Wholesale distributors and independent banners are now tracking whether multi-store grocery shopping rates will hold above the 70 per cent threshold as cost pressures continue across Australian metro centres.

  • Coles Drops Palantir AI Software Across 840 Australian Supermarkets

    Coles Drops Palantir AI Software Across 840 Australian Supermarkets

    Coles will terminate its software partnership with US technology firm Palantir. The platform will leave more than 840 Australian supermarkets when the three-year contract expires.

    The system processed more than 10 billion rows of operational data. That load covered employee shifts, bakery production schedules and store-level inventory allocations.

    Operational Data and Customer Backlash

    Signed in February 2024, the agreement deployed Palantir’s Foundry operating system and artificial intelligence tools for workforce planning and supply-chain logistics. The supermarket chain confirmed the platform will exit its stores beyond 2027. Public pushback over Palantir’s government surveillance and defence contracts drove the decision.

    Advocacy group GetUp mounted a billboard campaign near hundreds of stores in July, mimicking Coles branding to challenge its privacy practices. Coles rejected claims that shopper data was exposed to external access.

    “The software is deployed within Coles’ own environment and is operated and isolated under Coles controls,” a Coles spokesperson said.

    Supplier Scrutiny and Reputational Risk

    Retailers across the Asia-Pacific region face swift commercial fallout when back-end software vendors carry political or military profiles. Enterprise procurement once rested on technical capability and cost alone. That calculation has changed. Boards must now weigh vendor reputation alongside data isolation protocols.

    Ripping out an enterprise planning platform creates operational friction and heavy switching costs. Replacing tools that coordinate thousands of store rosters and perishable stock orders takes months of procurement, technical integration and staff retraining.

    The Shift in Retail Procurement

    Work began as a standard productivity initiative while grocery chains accelerated automation to curb operating costs. Palantir’s historical ties to intelligence agencies, US immigration enforcement and foreign defence contracts turned routine back-office optimization into an active brand problem.

    A replacement tender and full system migration across the 840 supermarkets must now wrap up before the contract concludes at the end of 2027.