Review 2017 - Coles Supermarkets
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Contents About us..................................................................................................................................................................................... 2 Welcome.................................................................................................................................................................................... 3 FY17 highlights........................................................................................................................................................................5 Everyday value.......................................................................................................................................................................6 Focus on freshness................................................................................................................................................................8 Delivering a better store network................................................................................................................................10 Boldly extending into new channels and services............................................................................................... 12 Paving a sustainable future............................................................................................................................................ 14 Transforming Liquor..........................................................................................................................................................16 Supporting our communities......................................................................................................................................... 18 Building great careers...................................................................................................................................................... 20 Better Together....................................................................................................................................................................24 For feedback about our report or to ask a question, contact: Coles Corporate Affairs 800 Toorak Road Hawthorn East VIC 3123 Ph: 1800 061 562 Email: Coles.Customer.Care@coles.com.au Unless otherwise stated, the financial data in this report has been complied as at 30 June 2017. Coles Supermarkets Australia Pty Ltd and its related companies (including their directors, officers, employees and agents) (Coles) make no warranty about the accuracy or completeness of this information. Coles will not accept any liability for any loss resulting from your use of this report, including any investment decisions you may make on the basis of its content. You should obtain professional advice before proceeding with any investment. © Coles Supermarkets Australia Pty Ltd 2018. You may not reproduce any section of this report without the prior written consent of Coles Supermarkets Australia Pty Ltd.
About us Our workforce of over 107,000 team members is spread across every state and territory throughout Australia. Coles is one of Australia’s largest retailers and provides fresh food, fuel stores and 89 hotels across the nation from as far south as groceries, general merchandise, financial and online services, liquor Blackmans Bay in Tasmania, to as far north as Casuarina in the and fuel through more than 21 million customer transactions on Northern Territory. average, each week across the business network. We also offer home, car, landlord insurance and credit cards. With more than 107,000 team members, Coles operates a store Coles Financial Services has more than one million customer accounts. network of 801 supermarkets, 883 liquor stores, 702 Coles Express 981 NT 22,241 QLD 31,600 12,258 6,786 NSW WA SA 1,581 29,886 ACT VIC 1,987 TAS Financial Services 2
Welcome Our 2017 Year in Review details some of the incredible work our Debbie which hit Queensland and New South Wales. This is something 107,000 plus team members have achieved across our business I know that I, and our team members, are extremely proud of. and within the communities in which we operate over the past year. Over the past year we have continuously invested in Coles Brand We continue to put our customers and team members at the heart by working closely with many Australian suppliers to provide our of everything we do. We are focused on delivering everyday value, customers with great product taste, value and quality. Regularly exceptional customer service, a compelling food offering and creating a outperforming in industry tests, our innovative Coles Brand products wonderful, inclusive working environment for all team members. are putting smiles on faces around the nation. Our ongoing focus on building better supplier relationships saw In 2018, our team members will continue to focus strongly on our Coles embark upon a range of new supplier partnerships in, whilst customers, suppliers and communities. Through their continuous continuing to support the growth and innovation of Australian small enthusiasm, strong workplace culture and passion for our products I and medium businesses through the $50 million Coles Nurture Fund. have no doubt we will have a great year ahead. Our team members care passionately about making a difference within their local communities. In FY17 Coles' direct support totalled close to $55 million, with an additional $8.9 million contributed by team members and customers. Together with our customers, Coles has raised and donated more than $24 million to Redkite. Since our partnership began in 2013, we have also contributed a total of 23 million kilograms of food items to SecondBite. Last year we further raised and donated John Durkan $310,000 to the Red Cross disaster relief fund in the wake of Cyclone Managing Director, Coles 3
Melisa Clarke, Brook Kinsela, Janet Myers and Kate Wright at the Coles Cowra Redkite donation board. 09 Jun 2017 Weekend Courier - Rockingham, Perth Section: General News • Article type : News Item • Audience : 43,561 • Page: 4 Coles to help fight cancer this Christmas Printed Size: 116.00cm² • Market: WA • Country: Australia • ASR: AUD 313 • Words: 206 Item ID: 790074562 SHOPPERS in Cowra can assistance for children and vide financial and emotional Customers can also help help families affected by can- young people affected by support to children and make Christmas sweeter by cer over the next four weeks cancer will be in higher de- young people with cancer purchasing a $1 Coles gin- as new findings show the mand this holiday season and their families. gerbread man, with 20 cents Licensed by Copyright Agency. You may only copy or communicate this work with a licence. need for financial support due to rising travel and liv- From now until Boxing from every sale going direct- Page 1 of 1 among cancer patients is 25 ing costs. Day, Cowra shoppers can ly to Redkite until Christ- per cent higher across New These findings come as purchase a $2 Redkite dona- mas Day. South Wales at Christmas. Coles launches a national tion card at Coles – with 100 Last year in December National cancer charity Christmas campaign to raise per cent of proceeds going alone, Redkite supported 134 Redkite predicts financial funds for Redkite to help pro- to Redkite. families across NSW. 13 Dec 2017 26 May 2017 Northern Territory News, Darwin Geelong Indy, Geelong VIC Author: Ashley Manicaros • Section: Business News • Article type : News Item Section: General News • Article type : News Item • Audience : 51,500 • Page: 12 Audience : 11,279 • Page: 15 • Printed Size: 445.00cm² • Market: NT • Country: Australia Printed Size: 233.00cm² • Market: VIC • Country: Australia • Words: 286 24 Nov 2017 ASR: AUD 2,513 • Words: 409 • Item ID: 886609604 Item ID: 781486984 Coolum and North Shore News, Coolum Author: Jessica Bahr • Section: General News • Article type : News Item Audience : 12,539 • Page: 3 • Printed Size: 385.00cm² • Market: QLD Country: Australia • ASR: AUD 190 • Words: 362 • Item ID: 877848790 Licensed by Copyright Agency. You may only copy or communicate this work with a licence. Licensed by Copyright Agency. You may only copy or communicate this work with a licence. Page 1 of 1 Page 1 of 2 Licensed by Copyright Agency. You may only copy or communicate this work with a licence. Page 1 of 1 Supermarket giant Coles spends up, employs 80 more spends big in the NT Coles has created 80 jobs at Drysdale after open- self-service olive bar, a scoop-and-weigh station ing a new supermarket as part of a $150 million and an extensive fresh produce area with fruit and investment program in the Geelong region. Coles opened the Drysdale store on Wednes- vegetables displayed on ice.” Store manager Jared Bond said he was excited day, adding to new supermarkets built at Waurn to introduce the Drysdale supermarket, which Ponds, Lara and Torquay over the past four years. would provide the community with benefits other The company has invested more than $150 mil- than just employment and choice. 02 Nov 2017 lion in the four stores and refurbishments at Co- “Coles is heavily invested in the local commu- ASHLEY rio and Belmont. nity and we’re committed to supporting a range of MANICAROS 29 Nov 2017 Mandurah Mail, Mandurah In WA addition to the 80 new recruits, the Drys- causes close to the hearts of customers and team Westside News Section: - Paddington, Brisbane dale supermarket would employ 70 team mem- members, ” he said. General Newsbers• Article typefrom transferred : News other Item stores •inAudience the area, : 37,400 • Page: “We’ll provide food28 at the Drysdale Primary SHAVING FOR HOSPICE: Coles Peregian manager Daniel Cashmere had his head shaved and a bucket of ice water poured over him THE opening of Coles Oasis than it ever has been. The new rolePrinted News •Size: 221.00cm² • Market: WA • to Country: 150, ColesAustralia • ASR: School’sAUDMini 470 • Words: 196event later as part of the store's fundraising efforts for children's hospice Hummingbird House. PHOTO: CONTRIBUTED into an assistant manager Section: General Article bringing type : News the total Item • team Audience : 45,069said. • Page: 4 Mudder fund-raising Shaving for a cause Shopping Village in Palmer- market-style has our latest in- and have now been Size: Printed appointed Item ID: 868219729 296.00cm² • Market: QLD“an The new market-style supermarket featured this month and team members will pitch in at the • Country: Australia • ASR: AUD 1,641 ston this weekend will com- clusions including an instore in-store bakery with freshly-baked bread, a school next month when they build a new vegie as a store manager. Words: 193 • Item ID: 879862831 plete a $21 million investment bakery, a continental deli and continental delicatessen with a large selection of patch at the school so kids can enjoy wholesome, “ I could see a career path in in the Territory in the last 12 an open-style butchery.” cheese, fresh seafood and a meat counter with a healthy snacks. The team is eager to extend ser- retail. There are so many dif- months. Oasis was one of Wool- slice on request service”, the company said. vice beyond the checkout and excited to open our Jessica Bahr “Last year I was at the with life-limiting conditions Coles are the anchor tenant ferent departments, although Licensed I by Copyright Agency. You may only “Drysdale copy will shoppers or communicate also be able tothis work enjoy a with a ”licence. doors. Page 1 of 1 worths better performing Jessica.Bahr@scnews.com.au Maroochydore store and we What they and their families. in what has been an $8 million stores reportedly turning over never imagined I would be Licensed by Copyright Agency. You may only copy or communicate this work with a licence. DONATING to and raising did the same sort of thing provide to There are currently only refurbishment of Oasis which managing a $50 million busi- Page 1 of 1 funds for charities or there, and I said if we could three children’s hospitals in more than $1.5 million per not-for-profits is one 01 Jun 2017 Cashmere beat last year there could be kids in that time the country, with has also included upgraded week. ness.” thing, but Daniel has taken it one step a prize and that was for me to shave my head and have of their life... I Hummingbird House the only one in Queensland. Fraser Coast Chronicle, Hervey Bay QLD amenities. Mr Durkan was confident In January the new store further. the ice water thrown all over think it’s great “What they provide to The Peregian Springs me,” he said. kids in that time of their life, The 4,000 sqm site was left will also offer a “Click & Col- Author: Boni Holmes • Section: Your Customised Content • Article type : News that they get that Item the store could hit more than Coles store manager Audienceto: shave “It’s a state fundraiser 5,990his• Page:that 8 •we Printed do, it’s aSize: 391.00cm² • Market: QLD • Country: giving them the chance to be a kidAustralia vacant in June after long-time $1 million a week in sales. lect” service for Palmerston volunteered Words: 422 • Item ID: 787337337 head and allow staff to dump event and when it finished four week chance. for as much as they can and the parents can stay tenant Woolworths moved its residents. It will be the first — Daniel Cashmere. as well... I think it’s great Children going bananas for athletics a bucket of ice water over Queensland raised a total of operation to Bakewell. The store manager for the store besides Casuarina to him as a means of raising awareness and participation $400,000 collectively in the state. own backyard.” that they get that chance,” Mr Cashmere said. The new next generation Oasis Coles is Nancy Morley, offer it. “Click & Collect” all- in the store’s fundraiser for Licensed by Copyright “Coles do a lot behind the Hummingbird House is a “It’s really important. Hummingbird House. Agency. scenes You may only with bigcopy or communicate cancer this work children’s with aworking hospice licence. “I look forward to P market-style Coles Supermar- 42, who will be the fourth fe- ows customers to order online. Mr Cashmere said it was a foundations and things, but to provide short break stays, continuing supporting them ket has created 120 jobs and male manager in the Territory. Oasis Coles will open Satur- chance for both the community and the store being locally in your own state is really good... it’s family support services, creative therapies, and care in the future and it’s a bit of fun to have the community brings Coles’ employment in Coles has eight stores in the day morning.hurdler Sally team to get involved. what’s happening in your at the end of life for children involved too.” NT. CHAMPION the Territory to nearly 1000 Pearson is urging budding ¡lÈ È yAã and the total number of super- She took the role after young athletics stars to race working on the opening of the markets to eight. It is the second market-style down to the westside’s run- new Coolalinga Central store. store Coles has opened with ning tracks as the Little Ath- “it is a tremendous achieve- Coolalinga Central opening ment to have such diversity letics season kicks off. earlier this year. that 50 per cent of our senior As part of the start to the JOBS: Some of the new Coles team open the store at Drysdale this week. ¼0j? jMjÂÅ ?Âj j M w |É àj?ÂÅ Îjà Þja ¢ ¢mÉ managers are women,” Mr Coles managing director summer season, Coles su- 22 Nov 2017 w?à à× W?¿Î W ?a N ´ kÇLkÄ@b´X ´@Ù WÅj M×Î ?Ýj ×ÅÎ ~ÎÎj ÎjÂ Þ M×ÅjÅÅ ?a ? w?à M×ÅjÅÅ à× Þ John Durkan said the Oasis Durkan said. Ms Morley said permarkets are donating 0¿. ?ÅÎ ? wj ÅjÎjWj ÞÎ à M ?a ÎÂj?Î ~ ×ÂÅ j aa ¥Ê× store was gutted after the pre- she always had aspirations to more than two million ba- M×Î ?ÂàMÂ×~¿Å j .?×j ?Å Âj~ÂjÎÅ ?M×Î Daily Mercury, Mackay QLD jÝjÂàj Þ à× Þ?Î Î Mj a?àÅ j? Þ×a¿Î vious tenants vacated the manage her own store. nanas to Little Athletics 22 Nov 2017 ÞÂ~ ÞÎ jÅ w Îj ÎÂj?Îja² ¼Î Å ?Å ?WWjÎ?Wj w Þ?Î Î a Î?β ¼ ×Î Î ÅÎja à space. “We have redesigned every- “I started in liquor as second clubs around the country. Daily Mercury, Mackay QLD Section: General News • Article type : News Item • Aud ?ÅÎ Ðy àj?ÂŲ -jWjÎà ÂjW~Åja wÂ Þ Îjà ?Âj ?a a¿Î Î?j MÂÎj ?a Î?Î à× Þ in charge. and went on to Printed Size: 147.00cm² • Market: QLD • Country: Aust ?àÎ~ Î j?Âβ ?Âa ?a ~jÎ Îj MjjwÎÅ thing in here right down to re- Coles will donate four j ?WjÝjjÎ^ j Å?a ¼.?j ÞÎ W×ÅÎjÂÅ w β½ groceries,” she said. Ýja Þ?Î Åj ajÅ ?a ÅÎ laying the floor,” he said. “it is “I worked my way through boxes of bananas per week Words: :268 Section: General News • Article type : News Item • Audience • Item 7,738 W?¿Î MjjÝj β ID: 877190883 • Page: 3 Îjà ~Î Mj ~Â×à M×Î ÎjÂj Å ?Þ?àÅ ? Þ?à ?Â×a j Å?a Åj ?Å ?Å Î ¾?W × Å¿ ?àÎj brighter and fresher inside each department and then got to Kenmore, The Gap and ¼ Þ?Å ?M×Î ¥ Þj Printed Size: 147.00cm² • Market: QLD • Country: Australia • ASR: AUD 155 ?à ÂMj²½ Å ?a jàÅ Þ?ÎW~ ÅÎ?ÂÎja ? y| Þ^½ Åj Toowong Harriers Little Å?a² ¼ ÅÎ?ÂÎja Îj a j ?Å ÞÂja j?Âà Îj ÅÎÂj ~ÂÞ ÞÎ Îj W? Athletics Centres as part of Words: 268 • Item ID: 877190883 jÅ ?ä?? .β jÝjÂà aj?ÂÎjÎ ÎÂ×~×Î Îj .Î?Î W×Îಠ¼ WjÂÎ?à jÝj Î×~Î ¼ ÅÎ?ÂÎja ww W?Å×?^ w~ its national sponsorship of w ÎÅj a?àÅ^ .·×?Âj ÅÎÂj^ W×a~ ¿a Mj ÞÎ jÅ w ÎÅ a?Âà^ wÂjÅ Âa×Wj^ ~ÂWjÂà ~^ M×Î ¿Ýj ?aj Åj Little Athletics. Licensed by Copyright Agency. ÞÂ~ ~jjÂ? You j ?a ÅjÂÝWj^ ~Ý~ may Îj only copy wj~orwÂjaÅ communicate ?a Þj ?Ýj th jÂW?aÅj ?a ÞÎ ÎÞ Pearson, who has also àj?ÂÅ Þ?Å ? w×Îj ÎÎj ¾ w ? ÎÂ?ajÅ¿² Å ×W w× ÞÂ~ !Þ ?Å ? ?ÅÅ?Îj ÅÎW Î~jÎj² ¿ Þ ~ signed up as the Little Ath- jàjj²½ ?a ?ÅÅÅÎ?Î^ j ÝjÅ Îj wÂÞ?Âa Î à |æàj? 22Ýj NovÎ×~ 2017 Îj àj?ÂÅ letics ambassador for the Licensed by Copyright Agency. You may only copy or communicate ?Ýj this work Daily~j Mercury, with Mà ÅMackay a licence. ·×Wà^QLD j W?j~j w ÅÂÎ~ ÎÂ×~ ?ÝjÂÅ?Âàu½ Page next three years, said: STARTING LINE: World champion athlete Sally Pearson has urged budding athletes to MjjÝjÅ ?WWjÎ?Wj ?a Îj ÅÎW  ?Î Îj WÂ?W Section:w General News • Article typew: News a?Þ Î jÅ×Âj Item οŠÂj?aà • Audience : 7,738 • Page: 3 “Little Athletics gave me ÂjÅjWÎ wjÞ Îj? Printed Size: 147.00cm² • Market: QLD • Country: Î ÂjWjÝj Îj Australia Â~ • ASR: AUD 155 race down to the Peel District Little Athletics Centre track. Photo: Supplied. jMjÂÅ ?a W×ÅÎjÂÅ Words: 268 • Item ID: 877190883 ajÝjÂjŲ the start I needed to be suc- ?àja ? M~ ?ÂÎ j Coles goes bananas for kids cessful and fulfil my dreams. ~jÝÎಠ.j Å?a j Þ jÎW Supermarket ‘quiet hour’ a ¿Î ~jÎ j ÞÂ~^ Åj Î?×~Î Î j Mà w?Îj “I encourage more kids Å?a ÎjÂj Licensed by ÞjÂj ÎjÅ Copyright Þj Agency. You may only ×~j .?×j w×aj copy or communicate w with a licence. this work Page across Australia to create Åj ?Åja jÂÅjw Þ?Î Þ?Å ?ÂàMÂ×~¿Å w?×Å .?×j +jÅ Þ?Å ?Å Îj their own story through ath- Åj a~² Supermarket ‘quiet hour’ applauded across state ÅÎ?à~ Þj w j Ðy letics. WORLD champion athlete tle Athletics. ¼¿Ýj ?a ? M?a wjÞ a?àÅ Â the start I needed to be suc- ÎjÂj¿Å Mjj jÞ W?~jÅ^½ COLES will roll out an àj?ÂÅ ?WjÝjjÎ ?Î jŲ cent, Coles Radio switc “I hope that the kids ¼ ?a ÞÂja Îj Å?j off, register Sally Pearson has urged bud- Coles has signed Ms Pear- cessful and fulfil my dreams. autism-friendly shopping acrossand scann j Å?a² understand that it doesn’t Supermarket ‘quiet hour’ applauded state Coles has expanded its online service with the launch of Click&Collect at Taree, matter if you’re notcreating winning ding athletes to race down to son as an ambassador for the COLES will roll out an I encourage cent,more kidsRadio Coles across switched experience accessibility COLES will roll out anat nearly sponsorvolumes 70 Radio switched cent, Coles Peter sponsor accessibility reduced Peter to th four new jobs in the community? the Peel District Little Ath- next three years to promote Australia to create their own off, register and scanner autism-friendly shopping off, register and scanner Sheean volumessaid the Sheean said the lowest level, wanted a trolley when you’re this age, you autism-friendly stores across nearly 70 the country, Little Athletics, shopping experience at reduced to the supermarket good can always be an Olympic letics Centre track as their sport, health story through athletics,” stores across the country, lowest level, trolley geographic spread and collection stopped and season kicks off this month.experience at nearly and wellbeing among70 young volumes reduced to the she said. following following a successful trial supermarket a successful collectiontrial wanted stopped and roll a good worked closely with Autism Residents in Taree and neighbouring towns are now able to champion collect theirifColes heart orders your online is set at the designated Click&Collect car park at Taree Central Shopping Centre. And to provide kids withstores across the country, Australians. lowest “I hope level, that the trolley kids earlier this year. earlier this year. cages removed from the geographic shop floor. spread and cages removed from th Spectrum Australia to identify locations. on it and you dream big The Quiet Hour program, enough.” following a nutritional boost at train- Freshafrom successful her win attrial the collection understand that itstopped doesn’t and which reduces noise and roll Quiet The distractions to make Hourworked PA announcements are program, also closely stopped, except in the shop with Autism floor. Since the trial in August, many customers have called forPA Quietannouncements case of emergencies, free When placing their order online, shoppers can select a collection Pearson time that suitsthe said super- them, and ing, Coles will donate four worldthischampionships in matter cages if you’reremoved fromwhich the who shopping easier for reduces Spectrum noise fruit isand Australia to Hour to be rolled earlier year. not winning customers find offered at customer out more broadly. upon collection a team member will bring their groceries directlymarket’s support to their was wel- car boot. also stopped, think it’s just except in come as Little Athletics had boxes of bananas each week The London, Sally Pearson Quiet Hour program, en- shopthis when you’re floor. age, you can heightened sensory distractions environments challenging, to identify make locations. service, and additional team members will be available to “I don’t people with autism who to Peel District Little Ath- couraged kids to join Little which reduces noise and always bePA an Olympic cham- announcements wasare shopping easier Since met with widespread for the trial in August, support customers. case of emergencies, would prefer less fr Same day collection is also available when customers place such an important their order before middayroleon in letics Centre as part of its Athletics this year. pion if also your heart is set on it praise from customers Quiet Hour will now be environmental clutter,” Sur weekdays and by 1pm on Saturday and 10am Sunday. fostering children’s health distractions to make stopped, except customers in the during who a trial in Melbourne many find customers offered fruit at an additional 66 have called Scarfe is offered wrote on Coles’ at custo and wellbeing. national sponsorship of Lit- “Little Athletics gave me and you dream big.” in August. In a viral stores, one store in every Facebook page. Sally Pearson with Little Athletics shopping members Adafor easier case Rand and Zach Schmidt. of emergencies,heightened free post, mum Emily Facebook sensory region across Australia, betweento beservice, the Quiet Hourand — Would you like to see additiona for Quiet Dive thanked Coles and said Hour every Tuesday rolled implemented
FY17 highlights Financials EBIT Food & Liquor Headline Sales Growth $1.6b 2.0% Convenience Stores Consecutive Deflation Sales Growth 4.6% 8 years Supporting Our Community $1.5 raised for $5.5 raised for million million 7.2 million donated to = 14.4 million meals kgs of food New & 700 new Opened our More than Innovative Brand Products 800th Supermarket Opened our global partnership with 700th site Customers & Team Members Customer Service Promise 2.1m more extremely satisfied Easter & Christmas liquor customers 2m customers 650,000 Always Open Surveys from Team Members 5
Everyday value Our customers love the price, taste, quality and range of our Coles Brand products and we’re always looking to develop new delicious products for Australians to buy at great prices. Our Coles Brand products offer great value and are consistently out-performing industry tests. During FY17, Coles Brand products won 51 industry awards. Down Down Coles is serious about lowering the prices of the products Australians The re-launch saw one of Australia’s most exciting entertainers and buy the most and in 2017 Coles had some of our customers' favourite voices, Casey Donovan hit a new high note as the lead singer of Coles’ products available at fantastic low prices. reinvigorated Down Down campaign – inspiring Australians to get Down Down to Coles for great value. Taking a look back on the year, Coles re-launched ‘Down Down’ in the new and improved disco format in early May, and celebrated by These latest price drops mean Coles customers save more on their dropping San Remo 500g pasta varieties to $1.80 and our delicious favourite items in the supermarket and brings the total products Ultimate 40% Choc Chip Cookies to $3.00. added to Every Day low pricing to more than 1,000 in 2017. 6
Top quality Coles Brand products Coles Brand continues to focus on delivering Australia’s best Coles works hard with suppliers to provide our customers with high food offering to customers through greater investment in prices, quality and safe Coles Brand products – today, we’re seeing customers continuous improvement in quality and a strong focus on delivering buy more Coles Brand products than ever before! great tasting food. This strategy is reflected in the outstanding feedback Coles Brand has received in the last year – picking up an incredible 88 medals at the Australian Food Awards and Royal Hobart Fine Food Awards. Coles won 14 Gold, 43 Silver and 31 Bronze medals across a number of categories within our Grocery, Bakery, Fresh Produce, Meat and Deli, Seafood and Meal Solutions teams. An extra special mention goes to the Deli, Seafood and Meal Solutions teams for picking up six gold medals. Our Slow Cooked Pork Belly Strips in Asian Style Marinade won both a Gold and Reserve Champion Award for achieving first place at the Royal Hobart Fine Food Awards. Our Coles Brand Thickened Cream won gold at both events. 7
Focus on freshness To be Australia’s best food retailer we have focused on delivering a market-leading fresh offering for our customers. We have been working hard with our suppliers, day-in day-out, to ensure we continuously improve the quality and availability of our fresh food. Building long standing relationships with fresh suppliers Coles is supporting Australian producers and growers with new and extended long-term contracts. During the year, Coles signed a 10-year agreement with TOP Pork Pty Ltd which paves the way for 12 Victorian and South Australian farming families to supply sow stall-free pork directly to Coles each week. During the year Coles extended its milk contract with Norco. The original five-year contract, signed in 2014, has been extended until 2023 with Coles having an option to further extend until 2026. Under a supply contract with Simplot, which has been extended until 2024, Coles has committed to sourcing an additional six million kilograms a year of Australian-grown vegetables which were previously sourced from overseas. 8
Fostering innovation through the Coles Nurture Fund Nurture Fund Supporting innovative small business Coles is proud to support small to medium Australian businesses through the $50 million Coles Nurture Fund. The Fund, established in April 2015, supports small-to-medium businesses in the food and grocery sector to develop new market-leading products, technologies and processes. Since its launch, Coles has provided close to nine million dollars in grants and interest-free loans to around 20 businesses including cattle farmer Bill Crowther. Using a $500,000 grant, Mr Crowther will become the first cattle producer in Queensland to supply locally-grown beef to Coles’ grass-fed GRAZE beef range. More than two years on, we continue to celebrate the amazing stories about our suppliers and their ambitious ideas coming to life. Through the Nurture Fund, we are providing small Australian businesses with the opportunity to make their bold, innovative ideas a reality. No added wax Coles was the first major Australian supermarket to exclusively offer than 70 per cent of Australians welcomed the idea of buying no no added wax apples to customers. added wax apples. After an overwhelmingly positive customer response from trials in Coles is consistently looking for new and innovative ways to improve Western Australia, South Australia and the Northern Territory, this our fresh produce. By removing the waxing process, Coles is simplifying bold change was rolled out Australia-wide during 2017 and all Coles farming processes and is reinvesting time and cost savings into Aussie customers nationally can now enjoy apples with no added wax. suppliers and their businesses. Offering apples straight from the orchard, Coles is continuously enhancing the quality and taste of its Wax has traditionally been used to enhance the appearance of apples, products for all Australians. however, Coles has removed this process after research indicated more 9
Delivering a better store network We’re continuously working to improve our store network across all our brands to make shopping easier and simpler for our customers. 700th Coles Express site In May 2017, Coles Express celebrated the opening of its 700th site in team members have worked across the Coles business for more Cairns, Queensland. The new Coles Express site at Parramatta Park than 20 years each! comes 14 years after Coles Express was launched in Australia. The opening of Coles Express at Parramatta Park created job prospects Looking back, Coles Express was established as a platform to give for six new team members – giving them the opportunity to join the customers greater access to food and convenience through petrol wonderful Coles Express team. It also enabled two long-service team stations and, ultimately, tackle the competitive convenience market. members from other stores in the region, to join and bring experience to this exciting fresh team. Together, our Coles Express Parramatta Today, Coles Express continues to operate with the same philosophy Park team will help deliver our promise of providing convenience and but on a much bigger and bolder platform. Coles Express now employs trusted value to our customers. more than 5,500 team members across Australia. Around 150 of these 10
Quiet Hour At Coles, we are always looking at ways we can meet the differing needs of our customers by improving the accessibility of our stores and by creating a shopping environment where our customers and team members feel comfortable. This year Coles partnered with Autism Spectrum Australia (Aspect) to trial a low-sensory shopping experience called 'Quiet Hour' in two of our Victorian stores; Ringwood East and Balwyn East, every Tuesday between 10.30am and 11.30am. Quiet Hour was implemented as a way of making shopping a little easier for customers with Autism and to enhance levels of customer accessibility. The response to Quiet Hour was outstanding! Customers and team members provided wonderful feedback and also took to social media to let us know they thought it was a great idea. Coles will now roll out Quiet Hour to more stores in FY2018. During Quiet Hour: • Store lighting is dimmed by 50 per cent • Limited PA announcements (except in the case of emergencies) • Coles Radio is switched off • Free fruit is offered at customer service • Register and scanner volumes are reduced to the lowest level • Additional team members are available to support customers during the trial • No trolley collections and roll cages are removed from the shop floor 800th Coles store opening On June 21 2017, over a century after the first Coles store opened its country create great employment opportunities and give us the doors, we opened our 800th store in the Aurora Village Shopping chance to invest in our local communities. Centre at Epping North in Victoria and our 801st store at Lakelands Coles has certainly grown since our humble beginnings with Shopping Centre in Western Australia. one store in Collingwood, Victoria. With a network of more than Both supermarkets feature a full in-store bakery, as well as continental 800 supermarkets, more than 107,000 team members and over delicatessens and lively meat serveries. Over 100 new team members 21 million customer transactions each week, Coles continues to were also employed at each store. New store openings across the invest in better quality, availability and value for customers. 11
Boldly extending into new channels and services Coles’ investment into new channels and services continued this year, with Coles Online recording double digit sales growth. Coles Financial Services grew General Insurance policies and also completed a 10-year credit card distribution agreement with Citi and flybuys continued to achieve growth in active members. flybuys and Velocity Frequent Flyer join forces On Thursday 20 October 2016, flybuys announced a new Australian- providing its customers with wonderful travelling opportunities first partnership with Velocity frequent flyer. The partnership saw just from doing the weekly grocery shop. flybuys and Velocity members give customers the opportunity to link This is just the beginning of another wonderful Coles their memberships to boost their Velocity point balances and earn partnership initiative. status credits when shopping at Coles, Coles Online, Liquorland and First Choice Liquor – opening up a whole new world of travel. With the cost of living pressure rising, sometimes travelling can take a back seat to the living essentials. Through this partnership, Coles is 12
Introducing – The new Coles app Coles is passionate about making shopping easier, faster and more a minute, save money through promotional ‘watch lists’, access the convenient for all Australians. Through the launch of the new Coles latest Coles recipes and obtain local store details through the click of app late last year, customers have been provided with an efficient a button. The user-friendly interface is designed to create a simple, and personalised shopping tool. easy and intuitive shopping experience for everyone. The Coles app enables our customers to link their flybuys member number to their account, build their online shopping lists in under CANSTAR Leading the way for online grocery shopping in Australia in 2017, Coles has been rated five stars by Canstar on special deals, product availability, variety of products, website navigation, value for money and overall customer satisfaction. 13
Paving a sustainable future Coles’ sustainability focus demonstrates our commitment to providing our customers with high standards of food and ensures the consistent monitoring and maintenance of our robust Coles Brand sourcing standards. It also means we are focused on investing to make our stores more waste and energy efficient. Responsible sourcing Coles is committed to providing our customers with high quality families. Coles has worked with our farmers and growers to deliver products, which means taking into account a range of issues including better, responsibly sourced products without adding to the cost of animal welfare and environmental sustainability. Our focus is simple the weekly shop. – to continue to work towards a sustainable future while supporting Over the past six years, Coles has led the way on responsible sourcing Aussie farmers, food producers and the local community. in Australia, including the introduction of RSPCA approved chicken, Coles has been listening carefully to what our customers have told ‘No Added Hormone’ beef, sow-stall free pork, responsibly sourced us about animal welfare and the quality of the food they feed their Coles Brand seafood and ethically certified coffee, tea and cocoa. 14
Making stores more energy efficient In 2017, Coles invested in excess of $15 million in energy efficiency projects, equating to more than 1,000 installations. These projects included LED lighting retrofits, improved hot water controls, upgrades in electrical infrastructure and solar power installations. By the end of June 2017, Coles installed solar panels on six supermarkets. We plan to install solar panels on up to 20 more supermarkets nationally by the end of the next financial year and aim to make solar a standard feature of new stores in the future. Focus on waste reduction and recycling This year, Coles announced it would phase-out single use plastic bags from all stores nation-wide over the next year. We also continue to offer soft plastic recycling as part of Coles’ REDcycle plastic packaging recycling program – the largest retailer-operated recycling program of its type in Australia. Through the program, Coles' customers can recycle plastic bags and soft plastic packaging using specially marked bins at the front of over 670 participating stores. A key feature of REDcycle is that it gives twice - firstly by helping reduce landfill and then by using the donated plastic to make outdoor furniture for schools and other community members. Since the program began, Coles has diverted more than 300 million pieces of flexible plastic from landfill across Australia. 15
Transforming Liquor Transforming our Liquor business continues to be a key priority at Coles. Our Liquor team has focused on optimising our store network and putting our customers at the heart of the business. Renewals in full swing The Liquorland reset journey continues, with 200 stores renewed across the year. There have been 450 store renewals under the program, which has been a great success. Customers and team members are continuing to enjoy the changes. The Liquor team’s renewal capability has also been on show with four Liquor Market trial stores now live in Queensland and Victoria. The feedback from customers and team members has been fantastic! 16
Coles Liquor SecondBite partnership The first year of Coles Liquor’s partnership with SecondBite has Greg Davis, Liquor Director has commented that ‘This is a true been a great success! Across three campaigns, over $1.1 million has partnership between Coles Liquor and SecondBite – both organisations already been raised. The Winter Appeal, held in June 2017 across three have amazing teams who are working together to provide millions of weeks, raised a total of $373,650, with Liquorland South Hedland, meals to needy Australians. I am and I know the whole Liquor team is in Western Australia raising the highest individual store amount. extremely proud to help with such a great cause!’. In addition to the in-store fundraising, a number of team members across the country have taken part in volunteer activities with SecondBite charity partners in their local areas. Growing exclusive Liquor brands Coles Liquor was proud to add more than 50 award winning products to (MIWF). There were eight more award winners at the MIWF, prompting its portfolio over the past 12 months. The most recent addition, Mr Finch’s Bob Paulinski, our Coles Master of wine, to reflect “we’ve worked really Pear Cider was Best in Class at the recent Australian Cider Awards while hard with our winemaking suppliers for years to create a portfolio of the St. Andrew Cabernet Sauvignon and The Fabulist Pinot Noir were amazing quality wines that over-deliver for our customers”. both double Gold winners at the Melbourne International Wine Festival 17
Supporting our communities Each year dedicated Coles team members work with our charity and community partners through fundraising, food donations and disaster relief. Our charity partners are very important to us – they play a big part in our culture, underpinned by our value of caring passionately. For the 2017 Financial Year, Coles' direct support totalled close to $55 million, with an additional $8.9 million contributed by customers and team members. Redkite Coles' support for national cancer charity, Redkite, reached a significant milestone during the year with more than $24 million raised since our partnership began in 2013. During the year, more than 40 Redkite and Coles ‘Dare to Dream’ scholarships were awarded to young people across the country whose lives have been impacted by cancer. Since 2013, over 150 scholarships have been offered. SecondBite Coles’ national partnership with SecondBite supports Australians who do not have access to fresh and nutritious food. Over 670 Coles supermarkets donate Fresh Produce and Bakery items to communities across Australia, with a total of 23 million kilograms donated since our partnership began in late 2011. Together, Coles Supermarkets, Liquor stores as well as our customers also raised over $1.5 million during the year to help SecondBite provide nutritious food to people in need. 18
Disaster relief Coles has a strong history of supporting the communities in which it operates. During the year, Coles team members supported relief efforts linked with Cyclone Debbie. To support the Red Cross disaster relief and recovery work, Coles donated $100,000 and raised over $60,000 for disaster-affected communities and farmers across New South Wales and Queensland. Through the Coles Nurture Fund, we also extended $150,000 in direct financial assistance to five suppliers severely impacted by Cyclone Debbie. Little Athletics & Athletics Australia This year Coles announced a 3-year partnership with Athletics To kick off the partnership, Coles is donating two million bananas to Australia and Little Athletics. Little Athletics centres around Australia during this summer’s Little Athletics season. Partnering with Little Athletics serves as a fantastic opportunity to get involved in grassroots athletics and support local communities The partnership will help foster little Aussie athletes by promoting across Australia to promote the benefits of a healthier lifestyle. healthy eating, active exercise and a balanced lifestyle. Coles is very excited to kick off this new partnership! 19
Building great careers At Coles we recognise that diversity and inclusion in our team is vital to the ongoing growth and success of our business. Our team, like our customers, come from many different cultures and backgrounds and we support all of our team members to be the best they can be. Achieving a safe working and shopping environment for our team members and customers is a key focus at Coles. Improving the Empowering all Creating a safe Supporting and Creating opportunities, accessibility of our team members to and supportive empowering all team raising awareness, stores, sites, workplaces access and enjoy the environment for all members to balance sharing stories, and digital platforms same opportunities team members their work and strengthening for team members to build great careers by driving awareness life commitments relationships with our and customers at Coles, regardless and education on through a flexible Indigenous team with disability of gender important LGBTI topics working culture and communities Better Together Diversity and inclusion in the workplace is paramount to the success which consists of five key pillars – Accessibility, Gender Balance, Pride, of any organisation. At Coles, we know the importance of team Flexibility and Indigenous. We are committed to building a safe and members feeling safe and supported to be who they are. We are supportive working environment for all team members, regardless of committed to focusing on the needs of every individual and fostering age, disability, race, gender identity, sexual orientation, ethnicity, or the right environment for each team member to achieve their full background because we are all Better Together! potential. In September 2017, we launched Better Together at Coles Indigenous team members Coles celebrated a significant milestone during the year, employing our 3000th Indigenous team member. The milestone – which comes two years earlier than anticipated – means we have now increased our percentage of Indigenous team members to three per cent, which is representative of the Indigenous population across Australia. We now have over 3,300 Indigenous team members across our Supermarkets, Liquor and Convenience outlets, up from 65 in 2010. This includes over 170 team members in skilled and leadership positions, such as bakers, butchers, department managers and store managers. 20
Gender balance Parental Leave Coles maintains a strong focus on gender balance in leadership During the year, we increased our Paid Parental Leave from eight positions within our business. This year, we piloted a Women in weeks to 12 weeks for the primary care giver. For the first time we also Leadership development program in our Merchandise function, introduced one week Paid Parental Leave for the secondary care giver. with 16 team members completing the full program. The success We also launched a pilot Parental Leave support program, of the program saw its expansion across other business functions, Parents@Work, aimed at providing working parents with confidence with more than 100 team members starting the program in 2017. and practical solutions to support them as working parents. Graduate program In 2017, Coles' workforce increased to more than 107,000 team members. This included an expansion of our existing graduate program to include Coles Express and distribution centres. In 2017, Coles hired 199 graduates, taking the total number of graduates at the end of the financial year to 402. In addition to the graduate program, Coles offered 140 bakery apprenticeships to support our commitment to providing an additional 180 in-store bakeries. Coles also plans to recruit an additional 100 qualified bakers next year. 21
Pride Pride at Coles and Coles' Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) Committee, promote an inclusive workplace where all team members can feel confident and supported. During the year, Coles sponsored Melbourne’s annual Midsumma Pride Festival with more than 80 team members, their friends and family, marching under the Coles banner. For the first time, Coles participated in the Australian Workplace Equality Index and was awarded a Bronze Employer status, recognising our actions to improve LGBTI workplace inclusion. Flexibility Coles is focused on continuously supporting and empowering all team members to balance their work and life commitments through a flexible working culture. Coles understands that being flexible means supporting team members to strike a healthy work-life balance – helping enhance team member engagement, enthusiasm and energy. After all, if our team members are happy our customers will be too! 22
Health and Safety Creating a safe workplace for team members, suppliers and other visitors, as well as a safe shopping environment for our customers is a key priority for Coles. In 2017, our total recordable injury frequency rate (TRIFR) was 38.1 for the year, a 13.6 per cent improvement on last year, due to a continued focus on safety leadership, risk reduction, and new health and wellbeing programs. Coles’ commitment to mental health is reflected in our Mind Your Health program. This year, five wellbeing pillars were introduced to improve mental wellbeing in the workplace and at home. These pillars are to Be Mindful, Stay Connected, Be Active, Keep Learning and Give Back. In October 2016, Coles launched an enhanced Employee Assistance Program (EAP). The program provides team members with direct access to confidential counselling, coaching and support for personal and workplace issues. Coles is continuously working hard to provide a positive, healthy team member experience and to reduce the stigma around mental health. Accessibility Coles is focused on continuously improving the accessibility of our stores, Coles actively reviews our digital platforms to check they are sites, workplaces and digital platforms for team members and customers accessible to a wide range of users. with disabilities. Cathi Scarce Coles is also exploring opportunities to improve pathways to employment and the recruitment process for people with a disability. We have achieved… • A graduate program with approximately 400 participants • 31.4 per cent of women in leadership roles • 3,300 Indigenous team members hired • The right culture and capabilities in-store to further engage customers 23
Better Together at Coles Grant Enders General Manager Supply Chain Over 2.1m Australians of working age have some form of disability aspects of our business. So I encourage everyone across Coles to and I believe a company of our scale, size and breadth has a duty find opportunities for people with accessibility challenges, so that to promote the equitable inclusion of people with disability in all Coles is an employer of choice for all Australians. 24
Eliza Demasi Coles Graduate Andrea Shaw Wellbeing Manager Having Pride as a pillar in Better Together is so important The Mind Your Health team consists of three part-time team to me, as it gives Coles team members the chance to openly members who job share one full time role. Job sharing three celebrate the diversity which exists in our team. Having the ways allows us to play an active role in the Mind Your Health chance to organise Pride March has been one of the best program, each leading a key project but also allowing us moments of my career with Coles. It certainly makes me the flexibility to take care of and spend time with our young proud to be a Coles team member. children. Having this balance means we can lead successful careers but also be great mums. Aisha Choudhari Coles Express Site Manager Claire Gorinas People and Culture Change Analyst Coming from a culturally diverse background I know how Coming from the Graduate Program has allowed us to important it is to feel accepted and included in both the approach Gender Balance through a grassroots effort and workplace and society. Also as a leader I believe in promoting provide a fresh perspective. In FY17 our key achievements have an inclusive workplace in which all employees feel valued included: multiple functional listening sessions, establishing and respected. mentoring partnerships, participating in the Retail Council’s Women in Retail Seminar Series and organising not-for-profit and internal guest speakers for International Women’s Day. 25
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