Coles listens to shopper feedback and revamps sales campaigns

New Coles boss Leah Weckert is unpicking some strategies developed by her predecessor, Steven Cain, after shopper feedback indicated confused messaging on value.

New Coles boss Leah Weckert has started to unpick some of the strategies developed by her predecessor Steven Cain, after shopper feedback indicated confused messaging on value and an inconsistent online offer.

As part of a slimmed-down and more focused pitch to shoppers, Ms Weckert, a former director of strategy, chief financial officer and supermarkets boss for Coles, has sidelined the “Dropped and Locked” sales campaign launched only last year to present consumers with three core campaigns: “Everyday”, “Down Down” and “Specials”.

Inside Coles, the executives hope the clearer and simpler messaging to shoppers – whether they are walking the aisles or shopping online – will drive category growth.

In a letter to food and grocery suppliers to update them on the new strategic focus for the nation’s second-largest supermarket chain, Jonathan Torr, the executive general manager of packaged groceries, conceded a recent survey of shoppers generated a list of areas Coles needed to improve on.

The survey, commissioned under Ms Weckert’s leadership as she took on the Coles chief executive role on May 1, asked shoppers about what value meant to them, about navigating the online offer and understanding the value on offer in the stores as well as online.

“The key themes identified (included) a lack of understanding/confusion between mechanics and messaging, lack of trust/poor perception to the value shown, sometimes either sceptical or underwhelmed,” Mr Torr reported to Coles food and grocery ­suppliers.

Coles is bringing back the ‘Down Down’ campaign.

He also said there was a “dilution of message” through too much variation and complexity and an “inconsistent omni-channel experience”.

Coles also conducted focus groups and received similar ­comments.

To meet this challenge and renew its promotional credentials, Ms Weckert has put on the backburner the “Dropped and Locked” campaign that was launched last year as the cost of living crisis took off and Coles wanted to align its pricing strategy with consumers whose household budgets are under severe stress.

Now Coles is focusing on just key three messages around sales and promotions, including the return of the “Down Down” campaign first launched more than 10 years ago under then Coles boss Ian McLeod, when the supermarket was owned by Wesfarmers.

It will have a slight tweak for 2023, launched as “Great value. Hands down.”

“This is an exciting opportunity for our supplier partners to participate in an initiative that will drive a simpler, clearer value proposition which is expected to lift consumer confidence, resulting in category sales growth and increased shopper satisfaction – and greater return on investment for your brands,” Mr Torr said in his dispatch to suppliers.

Recently appointed Coles chief customer officer Amanda McVay told The Australian that Coles had spent many months ­listening to its customers through focus groups and surveys and ­received valuable feedback on what really mattered to them when they shopped with the chain.

“Cost-of-living remains the number one focus for our customers and we have set out to simplify the ways they can find great value in our stores and online,” Ms McVay said. “Our ‘Great value. Hands down’ campaign is aimed to help our customers clearly identify value like the ‘Down Down’ products that have been reduced in price for at least three months.

“We will also be helping customers boost their Flybuys points through bonus offers on products, offer convenience through free click and collect when customers spend more than $50 online and help customers use the Coles app where Flybuys bonus offers can be easily activated.

“Helping our customers to best navigate our offers is an important part of our new value campaign.”

Last month Coles reported an annual profit of $1.098bn.

Profit from continuing activities fell 0.3 per cent to $1.042bn.

Revenue for the period rose 5.2pc to $41.825bn.

Originally published as Coles listens to shopper feedback and revamps sales campaigns