Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

 

[IAN3005]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

View attachment 34780

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

Escalating wage costs.... my ar**, that's a joke... unless he is talking about directors six-figure payouts... there are fewer staff staff on the floor.

 

[MaggieMay1948]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

View attachment 34780

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

I don't believe it.

 

[IAN3005]

I don't believe it.

You doubting Thomas you..... you probably think the way I do... believe 10% of what you hear, 50% of what you read and 100% of what you see... in my case, I believe -100% of what I hear and read and 100% of what you see. Even that is debatable..

 

[Veggiepatch]

Total BS. These legal thieves are still making money even on their "half price" specials!

 

[Shane/#]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

View attachment 34780

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

A bullshit sob story they are profit driven and will rip you off at every turn

 

[Jeff Sommers]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

View attachment 34780

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

 

[Jeff Sommers]

It is impossible for anyone to make Billions of dollars with a profit margin of 2.6%. It is amazing what can be done with figures. I once proved with batting results that tail enders were better batmen that openers. Woolworths and Coles are cheating both employees ( except senior management) and customers

 

[Penny4]

The new distribution cente will be a good thing. However, I reckon head office would like us all to do online ordering/delivery. I've noticed less floor staff, yet those staff are handling online orders out the back, and walking around the aisles selecting items for orders.

 

[Piras Antonio]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

View attachment 34780

Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

No i don't Believe any of the big supermarkets with big profits for every end of financial year. There is never any benefits for customers ( we make these profits for them) we should boycott big supermarkets untill they truly pass on real savings for the public!!! Not make believe half price deals and discounts a majority of these so called CUTS is not a loss for them because, the cuts that they do , a big chunk of these Dollars still go in there pockets by putting the so called discounted items , goes on other items that eventually we buy because if you need or you can not go without these essentials (ESSENTIALS) . SORRY i won't bore others with my Factual Beliefs! God Bless us all and hang on because all will no undoubtedly we will notice prices slowly go up every week!! Also with the power of bulk purchasing by these huge corporations , price freeze is possible, so before the stocks are starting to run low other bulk purchasing is done. YES times are tuff! For all But big corporations pass on better true savings BECAUSE you can fool some people sometimes but you can't fool people all of the time!!! God Bless us all

 

[LeahI]

A bit of creative accounting goes a long way. A lot of the money has been 'allocated' but that doesn't mean it will be spent on said item.
It does give a little glimpse into some of the costs and outlays that they have. But there would always be wriggle room to provide a real discount to customers I'm sure.

 

[AlanQ]

I don't believe it.

You think they're going to put in writing something that is going to a regulator (Including ASX) that is false? The main thing Coles is protective of is the share price. The share price drop would be a instantaneous and as such their reputation would be damaged for longer than the benefit you think lying to a Senate enquiry or worst, their (institutional) shareholders.

 

[AlanQ]

A bullshit sob story they are profit driven and will rip you off at every turn

What, you think they provide stores for the good of the community. They are by default a Profit driving retailer.

 

[AlanQ]

No mention of the excessive taxes paid by customers and subsequently by the retailer. Much the same as banks, they paid as much in taxes (on top of the GST) to govt as they made in profit. The bulk of said profit also goes to mums and dad investors and superannuation holders. If these big companies in this country didn't make profits the super funds don't make any true growth. Then watch the proverbial hit fan when people don't see their super pensions grow.

 

[Roysta]

Lately, surging prices have heightened the stress of grocery shopping for Australians. The situation worsens with rising energy and petrol costs, adding to the burden.

Recognising these challenges, Coles, a prominent Australian supermarket, is actively addressing concerns raised by frustrated shoppers who claim the retail giant is ripping them off.

In a statement, Coles stressed: ‘For every $100 a customer spends, Coles makes $2.60.’

The company asserted that only a small fraction of the money is spent by shoppers in its stores, underscoring that even a supermarket giant with billion-dollar profits is affected by the cost-of-living crisis.

This revelation came as Coles defended itself against accusations of taking advantage of Australians already grappling with various escalating costs, including energy and petrol.

A few months ago, Coles reported record-breaking profits amid the cost-of-living crisis, as detailed in our previous article here.

A Coles spokesperson added in the statement: ‘Coles is also not immune to the increased cost of doing business—construction costs, energy prices, the cost of logistics, and packaging have all risen.’

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Coles faced accusations of exploiting Australians amid rising energy and petrol costs. Image source: Facebook/@CityofPerth

So, how does Coles manage to make $2.60 for every $100 a shopper spends?

Breaking down the costs of employing over 120,000 Australians, working with ‘more than 8,000 suppliers and farmers’ and ‘investing in value’ for millions of Aussies, could help people understand whether Coles’ statement is true or a ‘rip-off’ as some might say.

Revenue from supermarket and liquor sales was approximately $40.483 billion, with a net profit after tax of $1.042 billion.

Therefore, the figure of $2.60 from Coles’ claim is derived by dividing the net profit after tax ($1.042 billion) by the revenue figure ($40.483 billion), indicating that for every $100 spent by customers in the last financial year, Coles made $2.57 in clear profit.

However, the question remains: where is that money headed?

Coles channels significant financial resources into various facets of its business operations.

During the 2023 financial year, the company allocated over $1.5 billion to lease costs and an additional $1 billion earmarked for supplementary property expenses.

A substantial portion of this financial commitment is dedicated to expansion and renovation, including plans to open 15 new supermarkets, close six, and revitalise 50.

The company also aims to inaugurate 20 new Coles Liquor stores, shutter six, and renew 110.

Coles has invested in heightened security measures for high-risk stores, AI scan technology, upgraded gates, and enhancements to fresh produce specifications to address challenges related to theft and escalating wages.

In terms of workforce expenditures, Coles places a priority on its staff, directing over $5 billion towards wages in the 2023 financial year.

A detailed report on the financial results reveals that Coles dealt with increased costs attributed to higher interest rates, lease renewals, new leases, and borrowing costs.

Moreover, Coles faced challenges from escalating wage costs, increased organised crime and theft, and producing waste due to disruptions in the supply chain.

Despite these issues, the company's net debt, excluding lease liabilities, stood at $521 million.

In response to these challenges, Coles is making significant investments (exceeding $1 billion) to improve its supply chain and make it safer, more efficient, and more sustainable.

In April, Coles marked a milestone by inaugurating an Automated Distribution Centre (ADC) in Redbank, Queensland—the largest single capital investment in the supermarket's 109-year history.

Another ADC is scheduled to open in Kemps Creek, NSW, in 2024. This strategic investment underscores Coles' commitment to adapting and fortifying its supply chain for the future.

Video source: YouTube/WITRON Group​

In the last financial year, additional costs to the business included spending $105 million on two automated milk-processing facilities from Saputo Dairy Australia to enhance the security of milk supply.

Simultaneously, Coles reported an investment in enhancing the shopping experience through its Smarter Selling program between 2019 and 2023.

This initiative resulted in $1 billion in savings, which were ‘reinvested into the business and used to help offset inflation’.

The program involved adding trolley-assisted checkouts to 167 more stores, improving Coles Online delivery crates, and introducing compact floor-scrubber machines to minimise manual tasks in delis, seafood, bakeries, and produce areas.

Key Takeaways

• Coles supermarket claims it only makes $2.60 for every $100 spent by customers in-store, attributing this to various business costs.
• The total revenue for Coles in the 2023 financial year was $41.471 billion, with a net profit of $1.098 billion.
• Coles has experienced increased costs due to rising wage costs, theft, supply chain disruptions, and the company's ongoing investments.
• The supermarket giant is investing heavily in streamlining its supply chain and improving shopping experiences for its shoppers, with notable steps such as the introduction of automated distribution centres and trolley-assisted checkouts.

Members, we want to hear your thoughts on this story. Do you believe Coles is providing fair value or not? Share your comments below!

What a load of rubbish, if Coles can make a profit of $8.4 billion, then why can't they reduce prices and only record $2.4 billion or is it a competition between Coles and Woolworths to see who can make the most profit???

 

[GillyH]

Total BS. These legal thieves are still making money even on their "half price" specials!

I was a sales rep for many years, the items on special don't make the store much money, a few cents per item. it is when they are sold after the promotion they make their money.

 

[David567]

Oh look, there's a pig flying past my window with 6 legs.

 

[LeahI]

Coles will pro

Oh look, there's a pig flying past my window with 6 legs.

Catch it. That's a few Xmas hams.

 

[Piras Antonio]

I was a sales rep for many years, the items on special don't make the store much money, a few cents per item. it is when they are sold after the promotion they make their money.

Mister Gilly those few cents that off that are given are taken in another way by putting those cents discounted on many other items hehe do you truly believe that these people don't do this and they don't make much profit? I respect your opinion but i just gave you a fact and I believe that is my factual opinion. God Bless us all because it's going to get a lot worse before it can ever get better.

 

[Piras Antonio]

Oh look, there's a pig flying past my window with 6 legs.

Where where where ?¿¿? Don't tell me I missed it Hehe