Coles set to slash number of products on its shelves

Coles is set to slash the number of products on its shelves by “double digits” in percentage terms in a bid to improve customer experience and avoid double-ups.

The Australian supermarket giant today confirmed remarks chief operations and sustainability officer Anna Croft made to stakeholders in November about trimming its stock-keeping unit (SKU) count by at least 10 per cent.

“It will be double-digit rationalisation,” Croft said duing Coles’ Investor Day last year.

Government appointed Dr Craig Emerson, former economic adviser to Bob Hawke and a senior minister in the Gillard government, holds a copy Food and Grocery Code of Conduct review at Woden Plaza in Canberra. June 23 Photo: Martin Ollman — Coles will strip back the number of products on shelves to avoid duplication and enhance efficiency. (Martin Ollman)

“Even if I went hard year after year for two years on the trot and did double-digit rationalisation, I would still have more range than I had in 2019.

“The context behind that would be, this is about removing duplication but adding choice.”

Croft said an example of Coles’ excess stock was its table salt products.

“We have 13 basic table salts. We don’t need those,” she said.

“We might go to five and we might add three different types of salt in to give customers more choice.”

Croft explained the decision to rationalise total product count was based on customer feedback for more efficiency and availability in-store.

Shoppers told Coles there was “too much range and lots of duplication”.

“We will be simplifying overall but we’re reinvesting in the categories in the space that makes the most amount of difference to customers,” Croft added.

“So yes, net reduction, but it will be reinvestment in categories and removal of duplication that we think we can add more choice to customers.”

MELBOURNE, AUSTRALIA - MARCH 19: A customer walks past a Coles supermarket on March 19, 2024 in Melbourne, Australia. Australia's two major supermarket chains, Coles and Woolworths, have come under scrutiny for their role in the cost of living crisis in the country, with both companies significantly increasing their profits during the pandemic while consumers faced rising living costs, local media reports said. Former cabinet minister Craig Emerson is leading a government inquiry into supermarke — Coles said the decision was made following customer feedback. (Getty)

The product transformation will take several years to be fully implemented.

Coles told 9news.com.au it would work with suppliers as it looked to reduce non-perishable products on shelves.

“Coles takes compliance with Australian Consumer Law very seriously, and we place great emphasis on building trust with all of our stakeholders, particularly our customers, team and suppliers,” a spokesperson said.

“We are committed to having strong, collaborative relationships with our suppliers which is fundamental to our success and essential for serving our customers.

“We are committed to working with our suppliers to improve the value, quality, range and availability of our products for our customers.”

The spokesperson added: “We hold regular listening sessions with our customers and work with our suppliers to tailor our ranges to meet our customers’ needs, removing duplication of products to make it easier for them to find products that suit their budgets.”