Coles is drastically reducing the number of products on shelves
The supermarket giant is removing a huge number of products from its shelves in a bid to make shopping “easier” for customers.
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Coles is drastically reducing the number of products on shelves in a bid to make shopping “easier” for customers.
The supermarket giant is currently implementing a “double digit rationalisation” that will see at least 10 per cent of products cut from its offering after shoppers reported there was “too much range and lots of duplication”.
Anna Croft, Coles’ chief commercial officer, told investors the supermarket’s shift was to “simplify” shopper experience.
“Even if I went hard year after year for two years on the trot and did double-digit rationalisation, I would still have more range than I had in 2019,” Ms Croft said at a stakeholder meeting in November.
“But we’re reinvesting in the categories in the space that makes the most amount of difference to customers.
“So, the context behind that would be, this is about removing duplication but adding choice.”
Ms Croft gave several examples of how the supermarket had over-complicated its product offerings, citing at the time that there were “13 basic table salts” on shelves.
“We don’t need those. We might go to five and we might add three different types of salt in to give customers more choice,” she said.
“Take one of our leading haircare brands, we have six different pack sizes ranging from 80ml to 1.1 litre.
“Now that drives huge complexity.”
Instead, Coles has considered customers’ needs, and is “reinvesting in the categories in the space that makes the most amount of difference to customers,” Ms Croft said.
“So yes, net reduction, but it will be reinvestment in categories and removal of duplication that we think we can add more choice to customers and be very data-driven, thoughtful and purposeful around how we do that to make sure it’s tailored to the right categories.”
But sceptics have noted the move comes after months of tension between the major supermarkets and their suppliers which has seen both Coles and Woolworths in the firing line of both Labor and the Coalition, with the major parties blaming supermarkets for higher prices.
The supermarkets however have suggested price increases have come from suppliers.
It also comes ahead of the final report from the ACCC’s supermarket inquiry, called by the Australian Government to examine the pricing practices of the supermarkets and the relationship between wholesale, including farmgate, and retail prices.
Coles said it “takes compliance with Australian Consumer Law very seriously” and has been working on “building trust with all of our stakeholders, particularly our customers, team and suppliers”.
“We are committed to having strong, collaborative relationships with our suppliers which is fundamental to our success and essential for serving our customers,” a spokesperson said.
“We are committed to working with our suppliers to improve the value, quality, range and availability of our products for our customers.
“We hold regular listening sessions with our customers and work with our suppliers to tailor our ranges to meet our customers’ needs, removing duplication of products to make it easier for them to find products that suit their budgets.”
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Originally published as Coles is drastically reducing the number of products on shelves