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Tag: Coles

  • 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.

  • Nearly 200 Coles Shareholders Urge Retailer to Act on Plastics

    Nearly 200 Coles Shareholders Urge Retailer to Act on Plastics

    Nearly 200 Coles shareholders urged the company to break its silence over plastic use in September 2026. The demand follows the supermarket chain’s decision to stop selling Antarctic krill oil supplements.

    Rival Woolworths followed suit days later, ending the sale of krill-derived products across its supermarkets.

    Supermarket Giants Drop Antarctic Krill Lines

    Coles confirmed the product exit after conservation group Sea Shepherd spotted several unavailable krill oil items on the grocer’s website. Woolworths then ended all krill supplement sales in its own stores.

    The simultaneous delisting strips high-margin marine dietary lines from both chains. Environmental groups have long scrutinised Antarctic krill harvesting for disrupting Southern Ocean food webs.

    Shareholders Target Packaging Policies

    Investors are now pressing Coles management to address packaging waste and match Woolworths’ commitments. The shareholder group wants firm disclosures on plastic volume metrics alongside specific reduction milestones.

    Coordinated pressure on both supermarket operators accelerates packaging redesign deadlines for regional brand and private-label suppliers. Those unable to cut secondary plastics or adopt circular materials face delisting risks.

    Sourcing Audits Across Australian Aisles

    The sudden krill exit shows how quickly activist campaigns alter Australian retail range planning. RetailNews Asia has tracked similar rapid category exits across fresh produce, seafood and packaging formats in recent trading periods.

    Coles faces its next test when investors look for binding packaging targets and plastic reduction timelines at the upcoming formal shareholder meeting.

  • GetUp Targets Hundreds of Coles Stores over Palantir AI Deal

    GetUp Targets Hundreds of Coles Stores over Palantir AI Deal

    Community advocacy group GetUp targeted hundreds of Coles stores across Australia with spoof digital billboards, challenging the supermarket operator over its enterprise partnership with US analytics vendor Palantir. The advertisements ran outside store entrances in July, mimicking the retailer’s signature red and white branding with the slogan: “Here at Coles, we’re always watching you.”

    The pushback followed Coles deploying software from the controversial US technology company to sharpen artificial intelligence and operational efficiency across its supermarket network. While the digital billboards were taken down quickly, the campaign triggered public debate over how large grocery chains handle customer data and explain tracking tools to shoppers.

    Public Scrutiny Over Store Analytics

    Supermarket operators across the Asia-Pacific region have accelerated investments in predictive analytics, automated inventory forecasting, and computer vision systems. Enterprise partnerships with overseas defence and intelligence contractors carry brand risks that standard retail IT upgrades do not. Consumer groups increasingly scrutinise the boundary between back-end supply chain optimisation and customer-facing surveillance.

    For grocery chains operating in concentrated retail markets, transparency around data architecture has become an operational necessity rather than an investor relations footnote. When retailers fail to define where data processing stops, third-party advocacy groups easily fill the information vacuum with negative messaging right at the store entrance.

    Retail AI Strategy Under Pressure

    The dispute reflects broader friction across Australian retail as grocers test advanced algorithmic tools to cut shrink and streamline operations. Coles had framed its AI rollout as an efficiency play, intended to modernise store workflows and stock management across its national footprint. Linking store-level operations to specialised analytics vendors has instead tested customer goodwill at a time of heightened consumer sensitivity around commercial data collection.

    Grocers managing similar automation rollouts across regional markets now face tighter questions regarding data sovereignty, third-party software governance, and in-store customer communications. Retailers will need to clarify operational boundaries as advocacy campaigns continue tracking corporate technology procurements.

  • Coles Drops Palantir Contract After Activist Campaign over Data Use

    Coles Drops Palantir Contract After Activist Campaign over Data Use

    Coles will end its enterprise partnership with United States software vendor Palantir. The decision follows an 85,000-signature petition against deploying military-grade data systems in Australian supermarkets.

    Company officials confirmed the business will let the three-year agreement expire in 2027 rather than sign an extension.

    Rostering and Supply Chain Deployment

    The grocer brought in Palantir in early 2024 to manage backend administration across its store network. The software scheduled shift rosters and coordinated bakery production runs. It also modelled inventory flow through distribution centres.

    Community advocacy group GetUp launched a campaign against the deal shortly after the contract took effect. Activists cited Palantir’s contracts with the United States Immigration and Customs Enforcement agency and the Israeli Defence Forces. They argued military-grade systems had no place in retail operations.

    A spokesperson for the chain rejected claims that the platform ever tracked shoppers or gathered aisle surveillance feeds. “Palantir’s technology has delivered value across Coles’ operations, particularly in rostering, store operations and supply chain planning,” the spokesperson said.

    The Enterprise Risk in Retail AI

    Supermarket operators across the Asia-Pacific region are rushing to automate workforce management and stock replenishment. Yet vendor selection brings brand exposure that procurement teams often underestimate. When enterprise software providers run heavy defence and state intelligence divisions, consumer-facing retailers absorb the reputational fallout directly at the checkout.

    Coles chose to let the contract lapse quietly at its natural term rather than terminate immediately. That approach lets the grocer run down existing IT commitments while scouting replacement platforms for store-level forecasting and labor scheduling.

    A Push Toward Neutral Systems

    Earlier, the company maintained Palantir never controlled internal grocer data or held rights to repurpose operational metrics. It declined to detail commercial reasons for walking away from the contract when asked for clarification.

    Chains across Australia and the wider region face sharper scrutiny over in-store data management. Woolworths and Coles both encountered customer resistance in recent years when testing automated checkout monitoring and digital loss-prevention systems.

    Attention now turns to how the retailer will transition its store scheduling and supply chain workflows to alternative software providers before the agreement concludes in 2027.

  • Australian Grocers Expand Private Labels as Coles Posts $1.09B Profit

    Australian Grocers Expand Private Labels as Coles Posts $1.09B Profit

    Coles Group posted a 1.09 billion Australian dollar net profit for the financial year ending June 28, as the country’s supermarket giants add thousands of private-label lines to store shelves.

    The expansion of store brands directly targets margin defence and customer retention across Australian grocery aisles.

    Private label pressure from Aldi

    Aldi entered the Australian market through Sydney in 2001, building its network on an inventory model where 90 per cent of products were private labels sold at lower price points. At that stage, Coles and Woolworths together controlled about 71 per cent of the national grocery market.

    The German discounter captured substantial market share by 2015. That persistent push forced both incumbent chains to rethink their merchandise mix and build out multi-tier house brands to compete across basic grocery categories.

    Margin defence and shelf allocation

    Supermarket operators use own-brand ranges to secure higher gross margins and gain greater use over suppliers. For grocery retailers across the Asia-Pacific region, allocating more shelf space to proprietary labels offers direct protection against wholesale price inflation.

    Both Coles and Woolworths face continued consumer demand for cheaper basket alternatives as shoppers swap branded packaged goods for supermarket-owned items.

  • Industry Beans Returns DC Coffee to Supermarket Shelves via Woolworths

    Industry Beans Returns DC Coffee to Supermarket Shelves via Woolworths

    Melbourne specialty roaster Industry Beans has returned DC Coffee to national supermarket shelves through Woolworths, targeting Australian consumers switching from cafe takeaway cups to home brewing.

    The rollout follows a total overhaul of the brand, which Industry Beans co-founder Trevor Simmons pulled from rival chain Coles after acquiring the business in 2023.

    Canstar survey data of more than 2,100 consumers shows 29 per cent of Australians have stopped buying cafe coffee to brew at home. Another 19 per cent bought a dedicated coffee machine to cut daily spending as the average takeaway cup climbed to $5.90 before plant-milk surcharges.

    Rethinking Supermarket Coffee

    Simmons bought DC Coffee from David Valmorbida after years of acting as its contract roaster. By 2023, the brand’s footprint in Coles had dropped to less than half its original SKU count because of weak sell-through and an absence of dedicated marketing support.

    Industry Beans stripped back the catalog rather than trying to salvage slow-moving specialty lines. The Woolworths range centres on larger pack formats and two high-volume blends, The Darkness and The Duchess, before introducing a third blend called The Swell and an instant coffee offering.

    DC Coffee traces its roots to Caffe Ducale under the Valmorbida family’s Conga Foods business. Former manager Rob Stewart later reshaped the label with street-art packaging, securing national distribution in Coles in 2020 as one of the earliest third-wave brands on mainstream Australian grocery shelves.

    Targeting the Home Brewer

    Specialty roasters across Asia-Pacific long protected premium positioning by keeping their best beans restricted to company-operated cafes or direct-to-consumer subscriptions. Rising living costs and sharper price scrutiny have forced a shift, prompting roasters to compete directly on supermarket shelves against commercial legacy brands.

    DC Coffee is backing the retail rollout with a national promotional push titled Fuel Your Creativity. The brand will track volume performance on the primary blends across Woolworths stores before releasing its instant coffee formats to the same network.

  • Humii Report Finds Flawed E-Commerce Signals Hurt Shopper Trust

    Humii Report Finds Flawed E-Commerce Signals Hurt Shopper Trust

    Almost 30 per cent of online retail refunds take more than three days to reach Australian shoppers, contradicting timeline promises made by 90 per cent of merchants. The finding comes from the 2026 Online CX Report by digital benchmark platform Humii, which tracked interface friction and post-purchase communication breakdowns across major consumer brands.

    Technical systems often report success while customer journeys falter. While automated triggers update internal order statuses instantly, shoppers face unexplained gaps between warehouse label generation, banking settlement cycles and actual parcel movement.

    Interface Habits and Misplaced Features

    Customer expectations increasingly penalise unconventional website layouts. Humii found that 91 per cent of digital shoppers expect live support chat widgets in the bottom-right corner of a desktop screen. When grocer Coles positioned its chat icon on the bottom left, users experienced higher friction locating assistance compared to rival Woolworths, which positioned its tool on the standard bottom right.

    Apparel giant Zara presents a similar design friction by requiring users to scroll product photos vertically instead of swiping horizontally. While the code operates without technical defects, the layout runs against standard touchscreen reflexes established across modern mobile operating systems.

    The Gap Between Fulfilment and Delivery

    Post-purchase messaging creates a wider credibility divide. Mystery shopping assessments revealed that apparel brands, including Ralph Lauren, generated automated dispatch notifications when carriers had merely received initial electronic documentation. Parcels remained uncollected in warehouses while buyers checked empty tracking links.

    Financial processing shows identical friction points. Retail systems mark refunds complete once an internal instruction issues to a merchant payment gateway. Because Australian interbank settlements frequently take up to five days to credit personal accounts, buyers are left contacting support desks to trace missing funds.

    Across regional e-commerce markets, engineering teams continue to optimise for system completion rather than customer receipt. Digital platforms that align notification triggers with physical carrier scans and realistic banking windows reduce inbound customer service volumes without redesigning their underlying tech stack.

  • Parent Hax Secures Coles Distribution for Rinse-Free Washcloth

    Parent Hax Secures Coles Distribution for Rinse-Free Washcloth

    Melbourne startup Parent Hax has secured national retail distribution with supermarket chain Coles for Top N Tail, its rinse-free washcloth priced at $15 for a 20-pack.

    The listing gives the young Australian brand immediate nationwide physical reach across one of the country’s two dominant grocery networks.

    Plant-based formulation targeting bath alternatives

    Top N Tail is formulated with plant-based cleansers, glycerin, aloe and chamomile. Unlike standard baby wipes designed for spot cleaning, the cloth is self-foaming and built for full-body cleansing without requiring water rinsing afterwards.

    Parent Hax engineered the item to bridge the gap between quick wet wipes and full tub baths, targeting parents seeking faster hygiene routines. The product cleans deeply enough to replace an evening wash while cutting down bath preparation and cleanup time.

    Supermarket baby care competition

    Supermarket baby aisles across Australia have traditionally belonged to multinational incumbents selling standard wet wipes and liquid soaps. Coles and rival Woolworths have steadily allocated shelf space to local independent brands offering premium or plant-derived formulations that command higher retail price points.

    Parent Hax enters this category at a per-unit premium compared to conventional baby wipes, betting that convenience and reduced water use justify the $15 shelf price. Initial sales performance across Coles stores will determine whether the startup can expand the range into additional personal care formats.

  • BioCheese Launches Protein-Fortified Vegan Cheddar at Coles for $9

    BioCheese Launches Protein-Fortified Vegan Cheddar at Coles for $9

    BioCheese has launched a protein-fortified plant-based cheddar shred across Australian supermarket chain Coles, priced at $9 for a 200-gram pack.

    The product delivers 10 grams of protein per 100 grams, making it the first added-protein dairy-free cheese stocked in Australian grocery aisles.

    Pea Protein and Melting Performance

    Formulated with pea protein, the shredded cheese is built specifically for hot and cold culinary applications. The brand designed the shred to melt in toasties and baked dishes while holding texture in tacos and salads.

    Each unit ships in a resealable 200-gram pouch intended for standard refrigerated dairy and plant-based sections across Coles supermarkets nationally.

    Protein Claims in Plant Dairy

    Plant-based cheese alternatives have historically faced pushback from shoppers over low nutritional value compared to traditional dairy cheddar. While standard dairy cheese provides around 25 grams of protein per 100 grams, standard coconut oil and starch-based alternatives often register near zero.

    By adding 10 grams of functional plant protein, BioCheese is testing whether enhanced nutritional metrics can defend premium shelf space as price-conscious shoppers scrutinise grocery spending across the Asia-Pacific region.

    Distribution is now live across Coles stores, with retail buyers watching whether the $9 price point can sustain regular basket repeat rates against traditional dairy blocks.

  • Coles Transitions Hundreds of Jobs to India Amid Intense Retail Competition

    Coles Transitions Hundreds of Jobs to India Amid Intense Retail Competition

    Australia’s supermarket behemoth, Coles, has announced that it will be outsourcing numerous jobs to India through a strategic alliance with Accenture, management consultants. This move comes as a result of the intensifying competition within the retail industry.

    Technological Advancement and Cost Reduction

    Coles asserts that this initiative will enhance its technological and specialist capacities to adapt to evolving customer demands. Simultaneously, the partnership with Accenture spanning over several years will decrease the cost of backroom operations. Coles, already the second-largest supermarket retailer in Australia, revealed that some of its corporate workforce’s roles would be transferred to Accenture’s international branches.

    The company voiced its concern for the employees affected by this transition, acknowledging the significant impact it might have on them and their teams. A spokesperson for the company emphasized, “These decisions are never made lightly.” They went on to add that the company plans to reassign as many impacted employees as possible, providing opportunities for them to acquire new skills and transition into different roles within the company.

    The information surfaced ahead of the company’s intended announcement, revealing that Accenture has already started recruiting for the program, primarily situated in Mumbai. One of the job listings sought a marketing campaign management specialist with seven to eleven years of experience, offering the chance to collaborate with the “Coles 360 teams on cross-functional campaigns.” However, the advertisement did not disclose any salary or pay scale details.

    Minimal Impact on Workforce, Future Plans

    Coles was prompt in pointing out that these changes would only affect a small fraction of its 115,000 Australian employees and would not impact the majority of its team members working in stores across the country.

    The retailer affirmed its commitment to compensate for any job losses resulting from the offshoring deal through its ongoing store expansion program. It also suggested that individuals affected by the Accenture arrangement might be reassigned within the Coles Group. However, the spokesperson had to admit that redundancies would be an inevitable part of this process.

    Questions & Answers

    What is the primary reason for Coles’ decision to offshore jobs to India?
    The decision was influenced by the mounting competition within the retail sector. Coles intends to strengthen its technological and specialist skills while also reducing backroom operation costs through this move.

    How will the offshoring affect the current employees at Coles?
    While the changes will impact a small portion of the workforce, Coles has committed to redeploying as many of the affected employees as possible and providing reskilling opportunities.

    Will the offshoring lead to a reduction in the overall number of jobs at Coles?
    Coles maintains that any jobs lost due to offshoring will be compensated for through its ongoing store expansion program. However, there may be some redundancies.

  • Coles Plans Closure of Crime-Plagued Elizabeth Street Store in Melbourne CBD by 2027

    Coles Plans Closure of Crime-Plagued Elizabeth Street Store in Melbourne CBD by 2027

    Coles, a leading supermarket chain in Australia, has disclosed plans to shutter its store on Melbourne’s infamous Elizabeth Street due to the location’s ongoing issues with crime and antisocial behaviour. The location, which has once again come under the spotlight following two separate machete attacks recently, is situated across from Melbourne’s Flinders Street station. The Coles Central store shares its vicinity with Woolworths Metro, located just a few doors down.

    A Strictly Commercial Decision

    Coles has stressed that the decision to vacate the premises at the end of their lease agreement in 2027 is purely a business move. This will result in the supermarket maintaining only one store in Melbourne’s Central Business District (CBD), based in Melbourne Central.

    The supermarket chain has recently made public its extended collaboration with Crime Stoppers Victoria, aiming to address the issue of crime within retail settings. Increasing instances of theft, abuse and hostility towards frontline workers have contributed to a progressively challenging environment within the retail sector, a Coles representative explained.

    Martin Smithson, General Manager of Supermarket Operations at Coles, stated that the rise in retail violence was absolutely unacceptable. He emphasized that the partnership with Crime Stoppers was just one of the steps being taken to tackle it, and called for a collaborative approach involving industry, retailers, government and police.

    Victoria: A Hotspot for Retail Crime

    Victoria, and particularly Melbourne, has been a focal point of Australia’s escalating retail crime issue. In 2025, the state recorded 95,181 criminal incidents at retail locations, marking an increase of 25.7% over the preceding decade.

    According to Chris Rodwell, CEO of the Australian Retail Council, the trend is irrefutable. Retail crime in Victoria continues to surge, posing a persistent, widespread threat to frontline workers and customers.

    Questions & Answers

    What is the reason for Coles’ decision to close its store on Elizabeth Street?
    The decision is strictly commercial, according to a Coles spokesperson.

    How is Coles addressing the issue of retail crime?
    Coles has announced an extension of its partnership with Crime Stoppers Victoria to help tackle retail crime.

    What has been the trend in retail crime in Victoria over the past decade?
    The state has seen a 25.7% increase in criminal incidents in retail locations over the past decade.

  • St Ali Surfs the Cold Coffee Wave: Italo Disco Espresso Hits Coles Supermarkets Nationwide

    St Ali Surfs the Cold Coffee Wave: Italo Disco Espresso Hits Coles Supermarkets Nationwide

    Melbourne’s prominent coffee roaster, St Ali, has broadened its retail scope with the nationwide launch of its Italo Disco Espresso Concentrate in Coles supermarkets. This move comes after the successful introduction of the brand’s primary assortment of freshly roasted coffee beans in Coles stores in July 2024.

    Meeting Consumer Demand

    This expansion is a strategic response to evolving consumer preferences towards chilled coffee formats. Company data from St Ali’s South Melbourne cafe suggests that cold coffee variants account for approximately 35% of all their beverage sales. Cold coffee has emerged as a significant trend, with St Ali’s CEO, Lach Ward, identifying it as the most noticeable shift in consumption patterns throughout the brand’s 21-year history.

    Sales figures further underline this trend. Innovative cold beverages like the Biscoff Fredo have surged in popularity, becoming the company’s best-selling signature products, outpacing traditional options like magics and black coffee.

    Availability and Trends

    The Italo Disco Espresso Concentrate is accessible to coffee lovers across Australia in a 750ml pouch, retailing at $22. St Ali affirms that the shift towards chilled beverages is not confined to independent specialty outlets. Worldwide statistics reveal that cold beverages represent approximately 60% of total sales in major commercial coffee chains, including notable ones like Starbucks.

    Earlier this year, St Ali further diversified its product range to accommodate the summer season. This expansion included the introduction of two new beverages and the return of a larger-format cold brew.

    Questions & Answers

    What is the Italo Disco Espresso Concentrate?
    It’s a product by Melbourne coffee roaster St Ali, recently made available nationwide at Coles supermarkets.

    What has been the most significant shift in St Ali’s consumption patterns?
    The company has noticed a significant tendency towards cold coffee beverages, marking the most significant shift in their 21-year history.

    What is the current trend in coffee consumption?
    Chilled coffee beverages are the growing trend, with cold drinks accounting for about 35% of St Ali’s sales and 60% of sales in major commercial coffee chains.

  • Coles Bids Farewell to Swaggle: The Unexpected Turn in Australia’s Pet Care Industry

    Coles Bids Farewell to Swaggle: The Unexpected Turn in Australia’s Pet Care Industry

    Swaggle, a pet care subsidiary of supermarket titan Coles, will be shutting down after a two-year run, it has been confirmed. Swaggle marked Coles’ entry into the thriving pet care industry which is currently valued at over $33 billion annually in Australia.

    Headquartered in Victoria, Swaggle was supervised by Chad Burke, previously a category manager at Coles Group. The online marketplace boasted an extensive inventory of items, featuring both niche and prominent brands in the industry.

    Despite its initial promise, Coles has decided to cease Swaggle’s operations beginning from April, just over two years after its inception.

    A representative from Coles praised Swaggle as one of the company’s most important innovation projects. The representative stated, “The venture demonstrated our ability to quickly ideate and trial in the market, and highlighted what a dedicated, nimble team can achieve when they stay attuned to the customer’s needs and are willing to experiment.”

    The company plans to investigate options for relocating Swaggle’s workforce within its group, while providing support to others during the transition.

    The representative further added, “It also serves as a reminder of the need to acknowledge market shifts and to redirect our focus and capital to ensure the continued execution of our strategy.” The spokesperson went on to express, “As the pet market’s demands have transformed and client needs have developed, we have made the difficult decision to close down our Swaggle Pet business from the beginning of April.”

    Questions & Answers

    Why is Coles closing down its pet care business, Swaggle?
    Coles is closing down its pet care business, Swaggle, due to evolving customer needs and shifting demand in the pet market.

    What will happen to the employees of Swaggle after its closure?
    Coles is exploring opportunities to relocate Swaggle employees within its group and promises to support others during the transition period.

    What was the significance of Swaggle to Coles?
    Swaggle was one of the most significant innovation initiatives at Coles, demonstrating the company’s ability to quickly create and test in the market, and highlighting the achievements of a small, talented team.

  • Coles’ Profit Dips Amid Ongoing ACCC Pricing Case and Regulatory Disputes

    Coles’ Profit Dips Amid Ongoing ACCC Pricing Case and Regulatory Disputes

    Despite seeing growth in its supermarket division, leading grocery retailer, Coles, has experienced a significant fall in profits, largely due to what has been referred to as the “case of the century”, instigated by the Australian Competition and Consumer Commission (ACCC).

    Profit Decline Amidst Supermarket Growth

    Coles’ after-tax profit for the first half of this financial year saw an 11.3% decline. This happened in spite of a considerable expansion in the company’s supermarket division, where sales, gross margin and earnings before interest and tax (EBIT) all increased. The phenomenal $23.1 billion in revenue from grocery stores contributed to 90 per cent of Coles’ total revenue for the period.

    Liquor Sales Dwindle

    On the contrary to the supermarket division, Coles’ liquor sales witnessed a “subdued” period, according to the company. The segment experienced a 3.2 per cent fall in revenue along with a significant 37 per cent plunge in EBIT.

    Regulatory Disputes Affecting Profits

    Coles’ after-tax profits were substantially impacted by provisions from regulatory disputes. One such dispute involved allegations of the company not adhering to the general retail industry award (GRIA) guidelines in terms of staff remuneration. The Fair Work Ombudsman passed a judgment on this matter on September 5 of the previous year.

    This case, heard in the Federal Court of Australia, along with subsequent settlements, resulted in a staggering $235 million cost to Coles. The company also warned of the “risk” of further payments. The dispute involved 15,011 staff members and led Coles to pay $31 million in remuneration to employees following an internal review.

    Ongoing ACCC Dispute

    In addition to past disputes, Coles is currently faced with an ongoing disagreement with the ACCC. The dispute involves the supermarket’s longstanding “Down Down” promotion which has not yet been resolved.

    Despite the ACCC’s allegations of misleading customers with its discount promotion, Coles maintains its innocence. The company stated that “at least” 245 products are being reviewed, and the financial impact of any outcome remains uncertain.

    Questions & Answers

    What was Coles’ primary source of revenue in the first half of this financial year?
    The primary source of Coles’ revenue was its supermarket division, which contributed to 90% of the company’s total revenue.

    How have regulatory disputes affected Coles’ profits?
    Regulatory disputes have significantly impacted Coles’ after-tax profits. One such dispute resulted in a $235 million cost to the company with the risk of further payments.

    What is the ongoing dispute between Coles and the ACCC about?
    The ongoing dispute between Coles and the ACCC is regarding the supermarket’s longstanding “Down Down” promotion. The ACCC alleges Coles misled customers with this discount promotion, a claim which Coles denies.

  • Tiffany Chen Takes the Helm at Coles 360: A New Era of Retail Media Innovation Begins

    Tiffany Chen Takes the Helm at Coles 360: A New Era of Retail Media Innovation Begins

    Tiffany Chen has recently been named General Manager for Coles 360, ushering in a fresh period for the retail media arm of Coles Group.

    Tiffany Chen’s Appointment

    The new appointment comes along with Coles 360’s transition into its next developmental phase. Michael Courtney, the Chief Customer Experience Officer at Coles, expressed his faith in Chen’s retail media expertise and its potential to guide the business’s future path. Chen’s extensive international experience and nuanced understanding of both Coles and the Australian retail media market, according to Courtney, equips her to spearhead the next phase of the enterprise and bolster the outcomes for the supplier partners of Coles 360 starting this year.

    Courtney emphasized Coles 360’s clear vision, which is to establish a gold standard for retail media performance in Australia. He voiced his confidence in Chen’s leadership skills, coupled with the existing momentum, to elevate their network to unforeseen heights.

    Chen’s Role and Past Experience

    As Coles 360 embarks on a series of enhancements, including amplified reporting and measurement, scalable performance capabilities, and the burgeoning of advertising offerings, Chen steps in. Her experience spans a decade of work with McKinsey & Company, a global management consulting firm. As a founding member of the company’s Retail Media Network practice, Chen has supported numerous businesses in the development and global scaling of their retail media networks.

    Chen expressed optimism in Coles 360’s position to generate new opportunities for partners and design more effective strategies to engage customers as the new year commences. She expressed her enthusiasm towards expanding upon the already robust foundations and contributing to the next chapter of retail media innovation.

    Impact on Coles Group

    Coles 360 continues to be a significant contributor to the growth of Coles Group, yielding measurable brand and performance results for supplier partners. Coles Group has also recently announced additional developments, including acquiring site leases with the approval of the Australian Competition and Consumer Commission (ACCC).

    Questions & Answers

    What is the vision for Coles 360 under Tiffany Chen’s leadership?
    The vision for Coles 360 is to set the benchmark for retail media performance in Australia. Chen’s international experience and understanding of Coles and the Australian retail media market are expected to guide the business’s future direction.

    What improvements does Coles 360 plan to undertake?
    Coles 360 plans on a series of enhancements, which include amplified reporting and measurement, scalable performance capabilities, and the development of advertising offerings.

    What role did Tiffany Chen play at McKinsey & Company before joining Coles 360?
    Before joining Coles 360, Chen was a founding member of McKinsey & Company’s Retail Media Network practice, where she supported businesses in building and scaling their retail media networks globally.