Updated

Rising capex to hit Coles returns

Simon Evans and Lucas Baird

Updated Jun 17, 2021 – 4.28pm, first published at 10.03am

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Coles Group chief executive Steven Cain says a $300 million step-up in capital spending to $1.4 billion in 2021-22 as the company accelerates automation in distribution centres will be worth it in the end because the food and liquor market is growing and no longer characterised by a “race to the bottom” in prices.

He promised not to leave the group’s 450,000 shareholders at the end of the queue when it comes to dividends, as the retail group invests heavily on automating warehouses on the eastern seaboard.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.

Lucas Baird is a journalist based in The Australian Financial Review's Sydney office.