Why Coles wants to change the way you shop
<p>Coles' managing director John Durkan has revealed that the supermarket chain will be working toward a new goal to place more of their own brand products on shelves.</p>
<p>In a strategy day briefing on Thursday, Durkan revealed that Coles wants 40 per cent of all products sold in stores to be its own label within five years.</p>
<p>Durkan said the supermarket chain was working to build an “own brand powerhouse”, which he claims would not reduce customer choice.</p>
<p>Durkan said Coles was responding to the high demand for the supermarket's private label range.</p>
<p>“The last thing we need to do is push stuff onto consumers that they don’t want,” he said.</p>
<p>“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.”</p>
<p>Durkan revealed that the proportion of Coles-branded products to overall sales was currently in the “high 20s” as a percentage.</p>
<p>In fresh categories, such as meat, it was above 50 per cent – unlike dry grocery lines, which were considerably lower.</p>
<p>Mr Durkan said the supermarket will now focus on the dry grocery lines where there was not a “value proposition”.</p>
<p>“There is lots of opportunities in this space … it’s a choice for customers,” he said.</p>
<p>In recent years, both Coles and Woolworths have increased their private-label ranges – allowing them to earn more profits as they face rising competitors, such as Aldi and other supermarket giants.</p>
<p>What are your thoughts on this change? Let us know in the comments below.</p>
