Coles: A History of Australian Retail Evolution
From a single variety store in a Melbourne suburb to one of Australia's most dominant retail forces, the journey of Coles is a story of strategic acquisition and constant modernization. Founded on the principles of the retail trade learned by George Coles in his father's store, the company has evolved through various branding eras and corporate ownerships to define the modern Australian shopping experience.
The Early Years and Rapid Expansion
The foundation of the empire began on April 9, 1914, when George Coles opened the Coles Variety Store on Smith Street in Collingwood, Melbourne. George had previously honed his skills working at his father's 'Coles Store' from 1910 to 1913. While the original family store in Wilmot, Tasmania, continued to operate as "The Original Coles" until a fire destroyed it in January 2014, the Melbourne venture set the stage for national growth.
The 1950s and 60s marked a pivotal shift toward food retailing. Between 1958 and 1960, Coles aggressively expanded its footprint by acquiring several grocery chains: 54 John Connell Dickins stores, the Beilby's chain in South Australia, and 265 Matthews Thompson stores in New South Wales.
[ไม่มีภาพประกอบ]The Rise of the Supermarket
In 1958, Coles entered the supermarket era—a retail format combining various food categories under one roof—by opening its first store in Hartwell, Melbourne. This venture initially traded as 'Coles Dickins Stores'.
Branding and National Reach
By 1962, the company adopted the Coles New World brand, utilizing Space Age-themed imagery to appeal to contemporary consumers. This growth trajectory continued until 1973, by which time Coles had established a presence in every Australian capital city. The brand underwent further refinements, becoming Coles Supermarkets in 1991 and simply Coles by 1998.
Corporate Restructuring and Wesfarmers Acquisition
The early 2000s saw significant organizational shifts. In 2004, the Coles Liquor Group office moved from Sydney to the head office in Hawthorn East, Melbourne, to improve efficiency between the food and liquor departments. This move coincided with the retirement of long-time director Craig Watkins.
The company also integrated other brands, such as Newmart in Western Australia (2002–2003) and various Bi-Lo supermarkets starting in mid-2006, rebranding them as Coles Supermarkets. However, some Newmart stores were sold to Foodland and rebranded as Action Supermarkets.
A major turning point occurred in July 2007 when Wesfarmers agreed to purchase the Coles Group for $22 billion, completing the acquisition in early 2008. Under the leadership of UK retailer Ian McLeod from 2008 to 2014, the group was restructured into three primary divisions: supermarkets, liquor, and convenience stores.
Modernization and Technological Innovation
In the last decade, Coles has focused on loyalty, diversification, and logistics. In February 2011, the company gained 100% ownership of Flybuys, Australia's largest loyalty program, by acquiring National Australia Bank's 50% stake. The company also diversified its product range by introducing private-label clothing in September 2011.
In 2018, Wesfarmers initiated a demerger of the Coles business, retaining only a 20% interest. As part of this transition, Steven Cain was appointed CEO of the Coles Supermarket brand.
Sustainability and Automation
Coles has recently invested heavily in green logistics and automation. The company deployed its first electric truck in April 2022, followed by fully electric delivery vans in August 2023 and a fully electric prime mover truck in October 2024.
To optimize supply chains, Coles has implemented advanced automation. This includes a Witron-powered automated distribution centre in Redbank, Queensland (April 2023), and a second Witron facility in Kemps Creek, New South Wales (August 2024), with a third planned for Truganina. Additionally, two 87,000-square-metre customer fulfilment centres using Ocado technology opened in late 2024 in Truganina, Victoria, and Wetherill Park, New South Wales.
Key Facts
- Founded: April 9, 1914, in Collingwood, Melbourne.
- Major Acquisition: Purchased by Wesfarmers in 2008 for $22 billion.
- Loyalty: Owns 100% of the Flybuys program since 2011.
- Sustainability: Transitioned to electric delivery vans (2023) and prime mover trucks (2024).
- Automation: Utilizes Witron and Ocado technology for distribution and fulfilment centres.
| Year | Event/Milestone |
|---|---|
| 1914 | George Coles opens the first Variety Store in Collingwood. |
| 1958 | First supermarket opens in Hartwell; acquisition of John Connell Dickins. |
| 1962 | Introduction of the 'Coles New World' branding. |
| 2008 | Wesfarmers completes the $22 billion acquisition of Coles Group. |
| 2011 | Acquisition of full ownership of Flybuys. |
| 2018 | Demerger from Wesfarmers; Steven Cain appointed CEO. |
| 2022-2024 | Deployment of electric fleet and automated distribution centres. |
Frequently Asked Questions
Who founded Coles and when?
Coles was founded by George Coles, who opened the first Coles Variety Store on April 9, 1914, in Collingwood, Melbourne.
When did Coles become part of Wesfarmers?
Wesfarmers agreed to purchase the Coles Group in July 2007 for $22 billion, and the purchase was finalized in early 2008.
What is the relationship between Coles and Flybuys?
Coles became the 100% owner of Flybuys, Australia's largest loyalty program, in February 2011 after acquiring the 50% interest previously held by National Australia Bank.
How is Coles updating its delivery and logistics?
Coles is integrating electric vehicles, including vans and prime mover trucks, and building highly automated distribution and fulfilment centres powered by Witron and Ocado technology.
What happened to the original Coles store in Tasmania?
The original family business, known as "The Original Coles" in Wilmot, Tasmania, continued to operate until it was destroyed by a fire on January 24, 2014.