American retail colossus Walmart could be coming to Australia in a move that would drastically ramp up the supermarket wars, according to expert predictions.
Coles has been earmarked to be demerged and floated on the Australian Stock Exchange as a separate company by its owner Wesfarmers.
Some experts in the retail sector are predicting investing in Coles would be the perfect opportunity for Walmart to enter the Australian market, which it has been eyeing for some time.
Experts predict American retail colossus Walmart could be coming to Australia in a move that would drastically ramp up the supermarket wars

Coles has been earmarked to be demerged and floated on the Australian Stock Exchange as a separate company by its owner Wesfarmers
Sue Mitchell from the AFR wrote earlier this year that the merger in the UK of Asda/Walmart with Sainsburys has freed up billions in capital for Walmart.
Now is also a brilliant time for US companies to invest in Australia, according to Kevin Moore at Smart Company, with America experiencing growth in the jobs and retail sectors that it has not seen in some time, coupled with a very healthy US dollar.
Moore also claims the move to Australia is a natural fit for the retail chain due to the fact there is a well-regulated market, no language barrier, and direct flights. The company has also gained experience competing with Aldi on their home turf.
America’s corporation tax rates have also been reduced, prompting big business to look at investing in companies with established market share and dependable earnings to attract shareholders by using the extra cash in dividend payments.
Once demerged, Coles would become a new top 30 listing on the ASX with Wesfarmers planning on retaining a 20% share ownership of the supermarket chain.
They would also keep a huge stake in its Flybuys loyalty program.

Australia is a natural fit for the retail chain with a well-regulated market, no language barrier, direct flights, and already having gained experience competing with Aldi on their home turf
Wesfarmers is a Perth-based corporation that has substantial farming and mining businesses as well as owning Bunnings, Officeworks and Kmart.
In the 12 months to the end of last year Woolworths had a 32.2 per cent market share of the grocery sector with Coles just behind at 28.8 per cent, according to Roy Morgan.
Aldi trailed behind with a 12.1 per cent share while IGA had a 7.4 per cent share.

In the 12 months to the end of last year Woolworths had a 32.2 per cent market share of the grocery sector with Coles just behind at 28.8 per cent