Coles has been an important part of the Australian community and economy for over a century and spends much time listening to and seeking to understand its customers.
“We know many of our customers are currently dealing with the challenges of rising living costs. Thirteen consecutive rate rises have exacerbated the cost of mortgages and rents.
With fuel prices increasing, it costs more to run the family car,” said Coles CEO Leah Weckert.
“The cost of education, healthcare, insurance, energy, and transport continues to rise. At Coles, we cannot influence these household expenses.”
Giving customers the best value possible on their grocery bill while balancing this with paying its suppliers fairly and reinvesting in its business to keep it efficient is essential for Coles.
Customers expect a choice of quality products across a range of value propositions to suit their budgets and the needs of their households. Coles remains very focused on this because we know that customers will have many other options for purchasing their food and groceries if we don't.
“We cannot provide great quality products to our customers without our suppliers and team members. We’re proud to be the retailer of choice for many suppliers to range their products.”
Claims have been made about Coles' interactions with its suppliers. It has acknowledged that it doesn’t always get it right, but all its procedures seek to ensure fair and sustainable relationships.
Suppliers have been working with Coles for generations, some for more than 50 years. Australian businesses have benefited because Coles’ Australia First sourcing policy has ensured that 100 per cent of Coles Own Brand fresh beef, lamb, pork, chicken, turkey, duck, milk, and eggs are sourced from Australia, as well as around 96 percent of all its fresh produce.
“If a supplier does have a concern, we have confidential, robust internal mechanisms and are bound by the Food and Grocery Code of Conduct, which has alternative complaint mechanisms and is enforced by the ACCC.”
Coles’ team members are the critical link between its suppliers and customers. They work daily to bring high-quality products into stores and give customers a welcoming experience.
“We are proud that thousands of our team members have worked with us for more than 20 years and that we continue to give many young Australians their first jobs.”
For every $100 spent in stores, Coles makes $2.60 in profit, or less than 3c for every dollar, which, compared to many other industries, is a minimal margin. This margin has remained consistent over the last five years and did not increase with the rise in inflation.
The Australian grocery sector is highly competitive, and Coles has welcomed competition. It has encouraged governments to invest in infrastructure and minimise regulation to make Australia a more attractive market for business.
