It’s been a year of hard wins and battles for Coles, one of Australia’s largest supermarkets.
Here are 12 highlights and low points of Coles’ year that brought in more online sales in a variety of stores and services. But it also went down as the year where customers felt the financial pinch in their pocket.
January: ACCC investigates large supermarkets
Pricing practices of supermarkets dominated headlines at the start of 2024, as consumers called for an in-depth investigation into the high prices, including that of Coles.
The ACCC chair, Gina Cass-Gottlieb, acknowledged that grocery prices have become a major concern for the millions of Australians experiencing cost of living pressures.
READ MORE: Australian supermarkets under the spotlight
February: Coles’ online sales grow rapidly
It was a good start for Coles with online sales that grew by nearly 30% in groceries to $1.8 billion and 14.9% in liquor. Marked as a milestone for Coles, e-commerce sales declined by 60% the previous year.
It kept on the solid growth path and delivered sales revenue totaling $43.6 billion. That’s an increase of 5.7 percent year-on-year.
But this didn’t sit well with customers who battled to keep up with the high grocery prices amid the pressure of the high cost of living crisis.
March: Why loyalty programs became popular
Loyalty programs became a massive magnet for consumers. While the cost-of-living crises continued to weigh down budgets, Coles and Woolworths tried to boost sales with loyalty programs.
From July to December 2023, both companies earned 2.7 cents in net profit from every dollar.
According to Statista, customers use 60% of their Coles and Woolworths’ rewards program cashback on groceries.
April: Amazon scares Australian supermarkets
In April, Australia’s grocery war heated up, with a fierce rivalry between retailers operating in the grocery space and Amazon infiltrating the fresh food market.
In November 2023, Amazon opened its new fulfillment center (FC) in Perth.
The Nightly reported that Amazon’s country manager, Janet Menzies, told The West Australian how proud she was that they were “forcing big rivals to shape upon delivery.”
May: Coles customers face trust issues
A survey by Roy Morgan shed some bad publicity on the Coles brand in May. The supermarket ranked among Australia’s most distrusted brands.
And amidst this low point, its rival Woolworths also dropped in its ranking of the country’s most trusted brand.
The distrust was attributed to the failure to sympathize with the public concern over the rising cost of living. What also damaged its brand was that it unveiled large revenue and profit in February while customers were battling to cope with high prices.
June: 25 years of online shopping for Coles
This was a historic moment for Coles, which launched its online website in 1999.
With 25 years of e-commerce sales and digital accessibility, this milestone symbolizes how Coles has adapted to its customers’ needs over the years.
July: Egg shortage hits supermarkets
As shelves turned egg-empty, Australians turned into frustrated shoppers. Coles was one of the major supermarkets hit by the shortage.
In July, tens of thousands of hens were euthanized after strains of influenza spread over farms in NSW and Victoria.
August: Coles reports rise in net profit
In August, Coles reported a 2.1% rise in net profit after tax from continuing operations to A$1.13 billion ($765.01 million) for the year ending June 30.
This surge in revenue from its grocery business is the highest level recorded since the pandemic.
Reuters reported revenue from sales at the supermarket business rose 4.3% to A$39.04 billion.
September: Coles invests in dark supermarket
A mega warehouse for Coles was probably the highlight of the second part of the year for the supermarket.
The $400 million dark supermarket helped speed up online deliveries to customers in Melbourne and Sydney.
This facility is said to be four times the size of the Melbourne Cricket Ground.
October: Coles opens second fulfillment center
Towards the end of 2024, Coles opened its second fulfillment center with the aim of improving the rate of online deliveries even more.
The fulfillment center is packed with technology, such as artificial intelligence, robotics, and automation. It helps Coles improve the way orders are picked, packed, and delivered.
November: E-commerce sales get a boost
The supermarket sales grew by 3.5% to AUS$9.51 billion, though liquor sales remained flat at $851 million in November.
During the 2024 financial year, the total e-commerce sales of the Coles Group came to around AUS$3.7 billion.
December: Amazon seems to win the grocery war
Remember that grocery war that heated up in April when Amazon started scaring Australian supermarkets?
A reputable report estimates that Amazon is now the second-largest online grocery retailer in Australia.
According to Goldman Sachs, Woolworths still has the largest online retail sales in Australia, followed by Amazon and then Coles.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
