Nitheesh NH
Coles
Sector: Food, drug and mass retailers Country of operation: Australia Key product categories: Grocery, liquor and general merchandise Annual Metrics [caption id="attachment_148931" align="aligncenter" width="700"]
Fiscal year ends on last Sunday of June*Trailing 12 months ended January 2, 2022[/caption] Summary Founded in 1914 and headquartered in Melbourne, Australia, Coles sells fresh food, groceries, general merchandise and liquor through its supermarkets, liquor stores and online platforms. Under its alliance with fuel supplier Viva Energy, the company is a commission agent for retail fuel sales through the Cole Express Network. In addition, Coles sells customer financial and lifestyle services. It operates under the banners Coles, Coles Local, Coles Express, Liquorland, First Choice Liquor Market, Vintage Cellars and Coles Financial Services. As of June 27, 2021, Coles operates 2,480 stores in Australia. Company Analysis Coresight Research insight: Coles is the second-largest grocery retailer by revenue in Australia, after its principal rival Woolworths. The group has cost advantages over competitors due to its significant scale and the difficult-to-replicate store locations of its supermarket and liquor businesses, which are located in central business districts and shopping malls, and convenience stores at petrol stations. We anticipate Coles’ partnership with Ocado, under which two customer fulfillment centers are scheduled to go live in 2023 and 2024, to add significant online capabilities and capacity to Coles’ current e-commerce operations. Although its rival Woolworths has a significant head start in online grocery with the faster rollout of its store-based automated micro-fulfillment centers, we expect Coles’ extensive product offering, product freshness and near-perfect levels of order fulfillment should lead to significant customer satisfaction and retention once the system becomes operational in 2023.
| Tailwinds | Headwinds |
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- Accelerate growth through new markets
- Customer obsessed
- Tailored offer with trusted and targeted value
- Own brand powerhouse
- Destination for convenience and health
- Leading anytime, anywhere, anyhow shopping
- Efficient and agile Store Support Center
- Optimized networks and formats
- Strategic sourcing
- Technology-led stores & supply chain.
- Better together through diversity and stakeholder engagement
- Innovation through partnerships
- Great place to work
- Safer choices together
- Together to Zero to drive generational sustainability
Source: Company reports[/caption]
Company Developments
| Date | Development |
| June 1, 2022 | Coles announces that it will reward its Flybuy loyalty program members with triple points for shopping Cole-branded products between June 1 and June 28, 2022. |
| April 19, 2022 | Coles launches its new Big Pack Value range, including larger packs of 44 essential household products, to help budget conscious consumers save up to 60% by switching to bulk-size products. |
| April 4, 2022 | Coles launches private-label coffee pods, made with cellulose and vegetable oils, which can be composted in home compost bins. |
| March 2, 2022 | Coles partners with drone delivery service provider Wing to pilot drone grocery deliveries in Canberra. |
| October 26, 2021 | Coles launches a new online platform, Bestbuys.coles.com.au, for its Best Buys product range, including appliances, home goods and gadgets. |
| October 15, 2021 | Coles commits to sourcing 100% of its electricity needs from renewable sources by the end of fiscal year 2025. |
| July 7, 2021 | Coles announces that it has reduced the price of more than 200 products to help reduce the cost of breakfast, lunch and dinner for Aussie households. |
- James Graham AM—Chairman
- Steven Cain—MD & CEO
- Charlie (Sharbel Raymond) Elias—CFO
Source: Company reports/S&P Capital IQ