Coles in Australia has formed two strategic relationships to aid the performance of its liquor and online grocery businesses.
New JV will see liquor and hotels business seperated
Coles has entered into a AU$200m agreement with private equity firm Australian Venue Co (AVC) that will see it divide its liquor store (bottle shop) business from its hotels business. Coles will continue to operate 243 liqour stores in Queensland and 10 stores attached to hotels in Western and South Australia. While AVC will manage the 87 hotels that make up Coles' hotel and gaming business. The new JV will be known as Queenland Venue Co. and each party will recieve the economic benefit of their respective operations. The agreement will allow Coles to focus on retailing in Queensland, where to own a bottle shop you must also operate a nearby pub.
eBay to offer Coles grocery products
In other news, Coles has partnered with eBay to offer over 4,000 products via the eBay website. The offer will include fruit and vegetables, ready meals, selected pre-packed fresh food, grocery, household, personal care, baby and pet food products. Products will be available for the same price they are in-store, although the delivery time of 2-4 days may turn off some customers and the service is limited to Sydney, Melbourne and Brisbane. Free delivery is available for orders over $49 and Coles is offering a 25% discount for the first 5,000 customers to use the service. It will also deliver even if no one is at home.