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Online retailer Ocado has announced a partnership with Coles to develop its online grocery business in Australia. This is the fifth international partnership for the Ocado Smart Platform in less than 18 months.

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Coles has increased the range that it offers for delivery via Uber Eats to include groceries.

Selected ranges include staples and impulse items

At the start of the year Coles started offering delivery of hot food in less than 30 minutes at its Pagewood, Sydney store via Uber Eats. Users could have ready-to-eat snacks, sandwiches, salads, pizzas, pies, curries and desserts delivered for a AU$5 delivery fee. The retailer has now increased the offer to include some grocery items such as milk, bread, dairy, fruit, cereals, biscuits and drinks. Coles is offering the new extended service from its Bondi Junction, World Square, Leichhardt and North Sydney stores.

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.

Coles has signed a deal with Optus to ensure that its stores and offices recieve faster fibre connections and improved mobile services.

Operational and loyalty benefits

The new deal with Australia's second largest telecommunications company will see the retailer improve the speed and service of its connectivity across 2,400 stores and multiple office locations. As well as the operational benefits, Coles stores will soon offer a larger range of Optus products, with the telecommunications company also set to join the flybuys loyalty programme.

Will aid implementation of new digital initiatives

With Coles and Woolworths both ramping up their digital capability, this partnership will help Coles with this acceleration. Coles chief information and digital officer, Roger Sniezek, commented, "The increased speeds and capacity of this new network give us the flexibility to rapidly increase the speed at which our stores can access and transfer data. We are delighted to be partnering with Optus to leverage the speed, flexibility, and agility of the new network, implement new digital initiatives, and ensure we are well placed to take advantage of emerging technologies in coming years."

Presentations

08/04/2019

An essential summary of trading priorities, latest developments, and other key commercial insights for Coles.

02/04/2019
This in-depth guide to Australia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
13/09/2018
We examine the latest retailer performance in Australia, as well as review the major trends that we identified at the start of 2018.
View all presentations

Key presentations

This in-depth guide to Australia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

An essential summary of trading priorities, latest developments, and other key commercial insights for Coles. 
 

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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