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Coles looks to online business to save $1 billion in costs

ASX 200, Finance
ASX:COL      MCAP $24.24B
17 June 2019 21:50 (AEDT)

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Supermarket giant, Coles has released a new business strategy which has seen its share price jump to the highest since it went public.

Currently the company’s share price has increased three per cent and sits a $13.23 a share. The move has contributed to the ASX200 rising today.

“The new strategy will improve the company’s online presence through the implementation of an optimised network,” CEO at Coles, Steven Cain, said.

“An increase in online food and drink sales will be targeted as more customers turn to home delivered groceries,” he added.

A smarter selling initiative is set to be implemented which will save Coles $1 billion by the 2023 financial year. Technology will be introduced which automates manual tasks, which is expected to assist in savings as labour and energy costs rise.

Additionally, a push towards affordable healthy food for customers will be taken. Prices are expected to decrease and a larger emphasis will be placed on nutritious goods. Data analytics and artificial intelligence will be used to improve customer experience, according to the company.

“Coles is working towards becoming Australia’s most sustainable supermarket, with energy and waste management a priority in the new strategy,” Steven said.

Financially the company expressed in the long term, revenue is expected to grow at the same pace as market growth.

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