Coles is shifting its focus from price to convenience as food prices start rising for the first time in 10 years and higher costs threaten to dent margins in the retailer's first year as a standalone listed company.

New managing director Steven Cain says that while Coles will stay competitive on price his priorities include making life easier for customers by improving the retailer's online business, which is approaching $1 billion in sales, and launching innovative new convenience store formats.