Coles gears up to lift curbs on purchases, flags ‘return to normalcy’

Coles is preparing to remove buying limits on key items such as toilet paper and has told its suppliers to prepare for a ‘return to normalcy’

Coles says toilet paper supplies were almost back to normal and that purchasing restrictions could soon be lifted. Picture: AAP

Coles is preparing to remove buying limits on key items such as toilet paper as it witnesses a stabilisation of shopping patterns across its supermarkets, and has informed its grocery suppliers to prepare for a “return to normalcy” that will require a renewed focus on product innovation.

This will be backed up by a return of Coles’s paper-based catalogue from May 6, new range reviews schedules and the resumption of key planning sessions for back-to-school and Christmas 2020.

Coles is in particular seeking from suppliers products to “inspire customers” that are increasingly spending more time at home as shopping patterns shift in the wake of the coronavirus pandemic, social isolation and a resurgence of cooking at home.

A letter sent to suppliers by Coles head of commercial and express, Greg Davis, and obtained by The Australian, reports that panic shopping seen in March and early this month is starting to dissipate, confirming similar comments from Woolworths in a dispatch to its suppliers last week.

In a memo last week Coles chief executive Steven Cain said toilet paper supplies were almost back to normal and that purchasing restrictions could soon be lifted.

Mr Davis has mirrored these comments in his communication with grocery suppliers, with an eventual end to buying limits placed on essential products such as toilet paper, pasta and cooking ingredients to give Coles and suppliers the breathing room they need to bring new products to market, plan for Christmas and reignite promotions.

“As the COVID-19 situation has evolved, we’ve watched and participated in the community’s efforts to “flatten the curve” and like you, are pleased to see this occurring,’’ Mr Davis said in his letter to suppliers.

“Customer demand continues to stabilise and supply levels are recovering in more categories each week allowing for customer limits to be removed. While social distancing measures continue in our supermarkets, there are many signs of a steady return to more normal conditions for our customers.’’

For suppliers, ranging across all categories, it means it was time to get back to planning and innovation.

“You will continue to see a return to normalcy over the coming weeks, with our range review program already available on the supplier portal, the return of our paper based catalogue from promotional week commencing 6 May, resumption of joint business planning and sharing of category plans across the business units,’’ Mr Davis said.

Woolworths has also decided to begin publishing a weekly promotions catalogue in another sign that normal shopping and trading patterns were emerging following the panic shopping of the last two months. Both Coles and Woolies will now be turning their attention to product innovation as supply and demand creeps towards balance, with Mr Davis reminding suppliers the crucial need for new product ideas to inspire shoppers — especially as they spend more time at home.

“We will also be focused on bringing NPD (new product development) and innovation to market to help inspire customers as they spend more time at home and look to us for ideas to help feed their families.

“Our strategy to inspire customers and win together has not wavered over this recent period. The success and positive customer response to our strategy tells us that although conditions may have evolved, the fundamentals including being trusted for value by our customers and providing a tailored customer offer has not.’’

Meanwhile, the flood of shoppers stripping products from the shelves of both Woolworths and Coles since March will be shown in the latest quarterly sales performance released this week. Coles will issue its third quarter sales on Wednesday and Woolworths on Thursday.