The outgoing managing director of Coles has unveiled the supermarket’s strategy to increase their brand over the next five years.
Coles wants 40 per cent of its products to be homebrand by 2023 and insists it will improve customer choice, rather than limiting it.
John Durkan presented the information at a Wesfarmers strategy day and acknowledged the growing demand for the supermarket’s private label range.
Coles supermarket plans to increase their own brand (pictured) over the next five years
The supermarket giant insights that it won’t limit consumers but instead provide greater choice
John Durkan, the outgoing Managing Director of Coles (pictured) presented the information at a Wesfarmers strategy day
Both supermarket powerhouses – Coles and Woolworths – have increased their private label ranges in recent years due to competition online and from Aldi.
Currently, the proportion of Coles private label range is in high twenties in the companies overall sales, Mr Durkan said. This varies across grocery lines with sales above 50 per cent for fresh categories, such as meat.
‘We need to make sure we have the right products with the right quality and right price … we are never going to take away choice,’ Mr Durkan said.
In recent years, Coles has increased their private label ranges to compete with Aldi and the online market
The fresh categories of Coles private label range have the largest sales as the company plans to increase sales for their dry grocery lines
‘The last thing we need to do is push stuff onto consumers that they don’t want.’
The strategy focuses on dry grocery lines where the supermarket giant wants to create a new value proposition.
‘There is lots of opportunities in this space … it’s a choice for customers,’ he said.
Wesfarmers, which also owns Kmart, Bunnings and Officeworks, is moving Coles to a separately listed business on the Australian Stock Market where Mr Durkan will hand his job over to Metcash supermarkets chief executive Steven Cain.
Mr Durkan (pictured) will hand over his position to Metcash supermarkets chief executive Steven Cain as Coles becomes a separately listed business on the Australian Stock Market