Coles’ resurgence against its primary competitor, Woolworths, began nearly five years ago during the pandemic as the supermarket chain initiated a transformation. Despite initial investor uncertainty, the strategy developed by Steven Cain, who led Coles through its $20 billion demerger from Wesfarmers in 2018, appears to be succeeding. Coles Group Limited is an Australian supermarket, retail and consumer services chain. It operates over 800 supermarkets and over 750 liquor stores across Australia.
For the first time since relisting on the ASX, Coles’ market capitalisation is approaching that of Woolworths. The company’s sales growth in the first quarter significantly outpaced that of its larger rival, a trend that has persisted for several months. This marks a significant shift for Coles, which had underperformed Woolworths for decades.
Previously known as Coles Myer until 2006, the company divested its department store business to TPG Capital and Newbridge before Wesfarmers, a Perth-based conglomerate renowned for Bunnings, acquired it in 2007. The recent gains suggest that Coles’ strategic initiatives are yielding positive results, positioning it as a stronger competitor in the Australian supermarket landscape.
