New Coles managing director Steven Cain says he is willing to exit the $35 billion retail fuel market at the right price to end a deal that has saddled the retailer with Australia's highest petrol prices and led to a one-third slump in sales volumes over the past two years.

Mr Cain revealed on Monday that Coles, which is soon to demerge from Wesfarmers, is experimenting with a convenience store format that sells on-the-go foods such as sandwiches and snacks and a range of grocery staples, but crucially does not sell fuel.