Coles Group

Coles Group Limited is one of Australia's largest retail companies and the corporate owner of the Coles supermarket and liquor businesses. Its principal activity is the sale of food, groceries and household goods through Coles Supermarkets, supported by online grocery operations and a broad private-label portfolio. The group also operates liquor banners including Liquorland, First Choice Liquor and Vintage Cellars, although the exact store portfolio has changed through acquisitions, divestments and format consolidation. The business traces its origins to 1914, when George Coles opened a variety store in Smith Street, Collingwood, Melbourne. Coles initially developed as a value-oriented variety retailer and was managed for decades by members of the Coles family. From the late 1950s and 1960s, the company increasingly shifted toward self-service supermarkets and grocery retailing. It studied American supermarket operating methods, expanded through acquisitions and opened stores across Australia's capital cities. Coles also participated in the creation and later full acquisition of Kmart Australia, establishing a broader retail group well beyond food. In 1985, G.J. Coles & Coy merged with Myer Emporium, creating one of Australia's largest corporate groups. The combined company became Coles Myer Limited in 1986 and owned or controlled a diverse set of businesses, including Coles supermarkets, Bi-Lo, Kmart, Target, Myer, Officeworks, fuel outlets, liquor stores and other specialist operations. During this period, the group experimented with formats such as Megamart and World 4 Kids, acquired Shell Australia's retail fuel operations and operated Coles Express, and briefly held the Australian licence for Chili's restaurants. The company sold Myer in 2006 and adopted the Coles Group name later that year. Operational difficulties, strategic uncertainty and takeover interest culminated in Wesfarmers' acquisition of Coles Group in 2007. Coles, Kmart, Target, Officeworks and related businesses were then managed within Wesfarmers. In 2018, Coles Group was separated from Wesfarmers and re-listed independently on the Australian Securities Exchange. The new listed group comprised the supermarket, liquor, convenience and related operations, together with financial-services activities and an interest in the Flybuys loyalty program; Kmart, Target and Officeworks remained with Wesfarmers. Since the 2018 demerger, Coles has concentrated on food and liquor retailing, digital grocery, supply-chain investment, customer loyalty and data-enabled retail. It has also reshaped its convenience and hospitality exposure, including the sale of Coles Express service stations to Viva Energy and a joint venture arrangement concerning the Spirit Hotels business. Coles competes principally with Woolworths Group, while also facing pressure from Aldi, independent supermarkets, discount retailers, specialist liquor chains, online platforms and changing consumer expectations. The group is listed under the code COL and operates primarily in Australia.

Coles began in 1914 when George Coles opened a variety store in Collingwood, Melbourne. The chain expanded by emphasizing broad merchandise selection and value. For much of its early history, management passed among members of the Coles family. In the late 1950s, the company examined American self-service supermarket methods, helping support its transition from variety retailing toward high-volume food stores. The first Coles supermarket opened in Balwyn North in 1960, and by 1973 the chain had established a presence in every Australian capital city. Coles expanded through acquisitions and partnerships. Kmart Australia was created through a joint venture with S.S. Kresge, with its first store opening in 1969. Coles later acquired full ownership. The company also bought Bi-Lo in 1987, although Bi-Lo continued as a separate supermarket brand for many years. In 1985, G.J. Coles & Coy merged with Myer Emporium. The combined company became Coles Myer Limited in 1986 and controlled a large portfolio spanning supermarkets, department stores, discount department stores, office supplies, fuel, liquor and other retail categories. The Coles Myer period included both successful expansion and unsuccessful diversification. Officeworks was launched in the 1990s and became a significant specialist retail business. Target and Fosseys operations were reorganized, while experiments such as Megamart and World 4 Kids were eventually reduced or abandoned. Coles Myer briefly operated Chili's restaurants under licence and sold Red Rooster in 2002. In the early 2000s, chief executive John Fletcher pursued a stronger focus on margins and core retail operations, including the acquisition of Shell Australia's retail fuel outlets, which were converted to the Coles Express format. Myer was sold to a consortium in 2006, and Coles Myer changed its name to Coles Group. The company then experienced strategic uncertainty, weak performance in parts of its supermarket and discount-retail portfolio, takeover proposals and criticism of corporate culture. Wesfarmers announced a successful bid in 2007, and the transaction was completed in November of that year. The businesses were subsequently operated within Wesfarmers, with Kmart, Target and Officeworks remaining in the Wesfarmers portfolio after the later separation. Coles returned as an independent public company in November 2018. Its re-listed group centered on Coles supermarkets, online grocery, liquor, convenience operations, financial services and Flybuys. After the demerger, management emphasized supermarket productivity, fresh food, private-label products, digital fulfillment, supply-chain modernization and customer loyalty. Coles entered a joint venture concerning Spirit Hotels in 2019 and acquired Jewel Fine Foods in 2020. In 2022, it agreed to sell Coles Express stations to Viva Energy, reinforcing its strategic concentration on food and liquor retail. Coles remains a major Australian retailer and a principal competitor to Woolworths Group.

• 2022

  Coles Express sale is announced

  [1]Coles Groupen.wikipedia.org

  Coles agrees to sell its Coles Express stations to Viva Energy.

• 2019

  Spirit Hotels joint venture is established

  [1]Coles Groupen.wikipedia.org

  Coles and Australian Venue Co. establish Queensland Venue Co. to operate the Spirit Hotels business.

• 2018

  Coles is demerged and re-listed

  [1]Coles Groupen.wikipedia.org

  Coles Group separates from Wesfarmers and resumes independent ASX trading under COL.

• 2007

  Wesfarmers completes acquisition

  [1]Coles Groupen.wikipedia.org

  Coles Group is acquired by Wesfarmers and ceases to trade independently on the ASX.

• 2006

  Myer is sold and Coles Myer becomes Coles Group

  [1]Coles Groupen.wikipedia.org

  Myer is sold, and the remaining company changes its name to Coles Group.

• 1993

  Officeworks is established

  [1]Coles Groupen.wikipedia.org

  Coles Myer establishes the Officeworks office-supplies retail business.

• 1987

  Bi-Lo is acquired

  [1]Coles Groupen.wikipedia.org

  Coles Myer acquires the Bi-Lo supermarket chain.

• 1986

  Coles Myer is formed

  [1]Coles Groupen.wikipedia.org

  The merged company adopts the Coles Myer Limited name.

• 1969

  First Kmart Australia store opens

  [1]Coles Groupen.wikipedia.org

  The first Australian Kmart store opens in Burwood through the Coles and S.S. Kresge partnership.

• 1960

  Coles opens its first supermarket

  [1]Coles Groupen.wikipedia.org

  The first Coles supermarket opens in Balwyn North, marking the group's major move into supermarket retail.

• 1914

  First Coles variety store opens

  [1]Coles Groupen.wikipedia.org

  George Coles opens the first Coles Variety Store in Collingwood, Melbourne.

A mainstream, value-focused Australian supermarket and liquor retailer emphasizing convenience, fresh food, private-label value, digital shopping and national scale.

• Supermarket retail · 1960

  Coles Supermarkets

  Coles Supermarkets is the group's flagship food-retailing network. Stores sell fresh produce, meat, bakery products, dairy, packaged groceries, beverages, household goods, personal-care items and private-label ranges. The format serves weekly grocery shopping through physical stores and is complemented by online ordering and home-delivery or collection services. Its broad national footprint and value-oriented positioning make it one of Australia's two dominant full-line supermarket brands.

• Online grocery

  Coles Online

  Coles Online extends the supermarket offer through digital ordering, delivery and collection. It provides access to the grocery assortment, promotional pricing and selected services associated with Coles stores. The operation depends on store-based fulfillment, dedicated distribution capabilities and the group's digital customer and loyalty infrastructure.

• Liquor retail

  Liquorland

  Liquorland is Coles Group's principal mainstream liquor banner. Stores sell beer, wine, spirits and related beverages, with formats located alongside or near supermarkets and in standalone sites. The brand supports Coles' broader grocery-and-liquor shopping proposition while operating within Australia's state and territory liquor-regulation frameworks.

• Liquor retail

  First Choice Liquor

  First Choice Liquor is a value-oriented liquor banner in the Coles Group portfolio. It focuses on competitive pricing and a broad selection of beer, wine and spirits, serving customers through physical stores and associated digital channels where available.

• Liquor retail

  Vintage Cellars

  Vintage Cellars is a more specialist liquor format within Coles Group. Its assortment and retail presentation emphasize wine and premium beverage discovery relative to the group's mainstream liquor banners, while still operating as part of the national Coles liquor division.

• Convenience and fuel retail · 2001

  Coles Express

  Coles Express was the group's fuel-and-convenience network, created after Coles acquired Shell Australia's retail fuel operations and rebranded the sites. Outlets combined petrol retailing with convenience merchandise. Coles announced the sale of the stations to Viva Energy in 2022, making the business a divestment rather than a continuing core Coles Group operation.

• Loyalty program

  flybuys

  Flybuys is a loyalty program associated with Coles and other participating businesses. It enables members to earn and redeem points and gives the group a customer-engagement and promotional platform. Coles held a joint ownership interest in the program after its 2018 separation from Wesfarmers.

• 2006

  Pharmacy Direct ownership dispute

  Coles acquired Pharmacy Direct and was accused of using the business's corporate pharmacy licence in a manner that conflicted with restrictions on pharmacy ownership. The Pharmacy Guild of Australia pursued legal action, and the New South Wales Supreme Court later ordered Coles to sell the business.

  Source

Read more

• 2022

  Coles Express is sold to Viva EnergyM&A

  Background

  Coles sought to concentrate on its core supermarket and liquor operations.

  Action taken

  Coles agreed to sell its Coles Express service-station network to Viva Energy.

  Aftermath

  The transaction reduced Coles' direct exposure to fuel retailing and transferred the network to Viva Energy.

  Announced sale consideration. A$300 million (2022)

  Source

• 2019

  Queensland Venue Co. joint ventureM&A

  Background

  Coles reviewed the operating model for its Spirit Hotels business.

  Action taken

  Coles and Australian Venue Co. established Queensland Venue Co., with Australian Venue Co. taking over hotel operations.

  Aftermath

  Coles retained the liquor-related economics while reducing its direct role in hotel operations.

  Cash consideration received. A$200 million (2019)

  Source

• 2018

  Coles is separated from WesfarmersM&A

  Background

  Wesfarmers elected to separate Coles from its portfolio and return the supermarket group to the public market.

  Action taken

  Coles Group was demerged and re-listed on the ASX under COL.

  Aftermath

  The independent company focused its portfolio on supermarkets, liquor, convenience, digital grocery, financial services and loyalty activities.

  Source

• 2007

  Wesfarmers acquisition is approvedM&A

  Background

  Coles Group faced weak performance, strategic uncertainty and competing takeover interest.

  Action taken

  Shareholders approved Wesfarmers' takeover, which was implemented in November 2007.

  Aftermath

  Coles Group's businesses were integrated into Wesfarmers until the 2018 demerger.

  Announced acquisition value. A$22 billion (2007)

  Source

• 2006

  Myer is divestedM&A

  Background

  Coles Myer reviewed whether to retain, separate or sell its department-store division.

  Action taken

  Myer was sold to a consortium controlled by Newbridge Capital and involving the Myer family.

  Aftermath

  The remaining company adopted the Coles Group name and became more focused on mass retail and supermarkets.

  Sale consideration. A$1.4 billion (2006)

  Source

• 2001

  Shareholder discount card is abolishedStrategy

  Background

  Management concluded that the shareholder discount card reduced margins without delivering sufficient strategic benefit.

  Action taken

  Chief executive John Fletcher ended the discount-card scheme.

  Aftermath

  The decision was part of a broader attempt to improve profitability and appeal to institutional investors.

  Source

• 2001

  Shell retail fuel operations are acquiredStrategy

  Background

  Coles sought to compete with Woolworths' growing discount-fuel proposition.

  Action taken

  Coles acquired Shell Australia's retail fuel operations and rebranded the outlets as Coles Express.

  Aftermath

  The acquisition created a large convenience-and-fuel network, which was later sold to Viva Energy.

  Source

• 2022

  Coles announces sale of Coles Express stations[1]Coles Groupen.wikipedia.org

  M&A

  Coles agreed to sell its fuel and convenience-station business to Viva Energy.

• 2020

  Coles completes acquisition of Jewel Fine Foods[1]Coles Groupen.wikipedia.org

  M&A

  Coles acquired ready-meal supplier Jewel Fine Foods after the supplier entered administration.

• 2018

  Coles Group returns to the ASX after Wesfarmers demerger[1]Coles Groupen.wikipedia.org

  M&A

  Coles was separated from Wesfarmers and began trading independently under the code COL.

• 2007

  Coles Group is acquired by Wesfarmers[1]Coles Groupen.wikipedia.org

  M&A

  Shareholders approved Wesfarmers' acquisition of Coles Group, ending the company's independent ASX listing and placing its retail businesses within the Wesfarmers structure.

1. 1Coles Groupen.wikipedia.org
2. 2Coles Group official websitecolesgroup.com.au
3. 3Coles Group leadershipcolesgroup.com.au
4. 4Australia's Coles posts flat half-year earnings hurt by underpayment costsbusinesstimes.com.sg
5. 5Coles launches 'Together to Zero' strategy to drive generational sustainabilitymiragenews.com
6. 6Coles launches national sustainability campaign as it commits to no longer give away plastic collectible toysmiragenews.com