Coles Supermarkets Australia Pty Ltd is one of the two biggest Australian
supermarket chains, owned by Wesfarmers and is now the largest by revenue.
Founded in 1914 in Collingwood, Melbourne by G.J. Coles, Coles operates
more than 762 stores throughout Australia, including several BI-LO
Supermarkets. Coles has over 100,000 employees and together with rival
Woolworths, accounts for more than 80 per cent of the Australian market. Coles
also operates a further 650 Coles Express convienance stores, at Shell
Petrol stations. The company has also successfully expanded operations into
insurance and mastercard. As of 2015 Coles overtook rival
Woolworths in revenue, due to a major decline in Woolworths' struggling home
hardware division and a company restructure.
Coles has seen successful marketing campaigns in recent years, which have
also been atrributed to their growing success, in particular with their 'low
prices' and 'quality' stances. Led by a substantiated music theme and celebrity
chef Curtis Stone. These include "down down, prices are down".
History George James Coles learned the retail
trade working for his father's 'Coles Store' business from 1910 to 1913. Coles
itself was founded when G. J. Coles opened the 'Coles Variety Store' on 9
April 1914 on Smith Street in the Melbourne, Victoria 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.
In 1960, the first supermarket was opened in the Melbourne suburb 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 rocket imagery. In 1991, the stores were rebranded Coles
Supermarkets and from 1998, simply as Coles.
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. On 2 July 2007, Western Australian based company Wesfarmers
agreed to purchase Coles Group Limited for A$22 billion. The purchase was
completed in early 2008. 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.
In February 2008, Wesfarmers appointed UK retailer Ian McLeod as managing
director of Coles Supermarkets plus liquor, fuel and convenience businesses.
McLeod's previously headed UK car parts and cycle retailer Halfords and gained
supermarket experience with Asda and Wal-Mart.
In February 2011, Coles acquired National Australia Bank's 50 per cent
interest in Australia's largest loyalty program FlyBuys, giving it 100%
ownership. In September 2011, Coles commenced stocking private label
clothing in their stores with several stores receiving refits to accommodate
the range. In 2014, John Durkin was appointed the
new managing director. Advertising and branding
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. "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.
"Save everyday" was later changed to the grammatically-correct "save every day".
In 2007, that 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", "Cutting the cost of your shopping" and
"It all counts". Its current slogan is "A little better every day".
In the 1960s, Coles sponsored a general knowledge quiz show, Coles £3000
Question which aired on Channel 7. 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
incorporates the tune of "Down Down", a 1975 hit by British rockers Status Quo.
In 2011, the campaign was revised to the fit the tune of Petula Clark's 1964 hit
"Downtown". 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 2012, Coles released another
sub-slogan, "There's No Freshness Like Coles Freshness", to complement the
freshness of their fruits and vegetables. In response to the price
cuts that were central to the 2012 campaign, rival supermarket corporation
Woolworths accused Coles of misleading consumers due to a claim that the
discounts were not new and are part of the daily business of supermarkets.
Woolworths chief executive Grant O'Brien explained, "It's a promotion that
happens every day of the week in retail land. To say it's a huge reduction and a
market changing or game changing is in a way to mislead."
Internet retailing Accusations of anti-competitive
practices Coles has been accused by suppliers of
using heavy-handed tactics when dealing with its suppliers. A 2004 investigation
by the Australian Competition and 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. In 2013, the ACCC was investigating both Coles and Woolworths
over accusations that they used improper market practices to force down prices
from suppliers. Legal cases
A 2014 Federal Court of Australia case ruled that Coles "threatened harm to
suppliers if they didn't meet their demands."
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.
Notable promotions 4 cents-per-litre fuel offer: When a
customer spends $30 or more in a single transaction at a Coles, BI-LO,
Pick'n'Pay or Liquorland, they receive a 4 cent discount coupon on their receipt
for use at Coles Express service stations. This practice has been
criticised by competition law experts who argue that people pay higher petrol
and grocery prices to fund these discounts.
Shoppers can collect flybuys loyalty program points at Coles Group
businesses. Between 1991 and 1993, Coles
Supermarkets ran a promotion in conjunction with Apple Computer and 12
major suppliers entitled "Apples for Students", where students collected
grocery dockets and returned them to their participating school, and once a
certain value had been reached the school would be provided with a free
Macintosh computer. 70% of Australia's schools and kindergartens participated
and gained more than 25,000 computers, equipment and software worth $13.6
million. In 2010, Coles Supermarkets ran a
program called "Sports for Schools" which customers collected coupons to
hand in to their school in exchange for sports equipment. The program was run
again in 2011 and in 2012. Private label brands
Coles has seven levels of generic or private label brands as well as a
private clothing brand. Coles: A mid-price line, replacing the
'You'll love Coles' brand. Designed to match established branded products.
Coles Smart Buy: A budget label covering household essentials and groceries.
Easily recognizable due to its plain white and red accented packaging.
Coles Finest: A premium brand, with a small range of gourmet foods. Promoted
as of greater quality than many well known branded products and often more
expensive. Coles Green Choice: A range of household
products which claim to be environmentally responsible, with a
donation being made to Clean Up Australia with every one of its products
sold. Coles Organic: A range of products grown
and processed without the use of synthetic chemicals, fertilizers,
pesticides or herbicides, approved by official certified organisations.
Coles Simply Less: A range of products designed for health conscious customers.
Usually have lower fat, salt, or sugar levels than traditional products or are
designed as a health products such as the Simply Less range of meal
replacement shakes. Coles Simply Gluten Free: A range of
around 40 products designed for customers who are gluten intolerant or
on a gluten free diet for other reasons. Mix Clothing: A range of budget
essential clothing; Mostly women's and children's clothing.
Halal products Coles lists its halal products, by
category and by brand, on its website. See also
BI-LO Coles Express
Coles Group Coles Online
Liquorland List of supermarket chains in Oceania
Pick 'n Pay Hypermarket Wesfarmers
References External links
Official website