In a bid to simplify the shopping experience for its customers, Coles has announced that it will be significantly reducing the number of products on offer.
The supermarket giant aims to achieve this through “double-digit rationalisation”, a move that will help remove duplication and add more choice for customers.
What Does This Mean for Customers?
According to Coles’ chief operations and sustainability officer, Anna Croft, the decision was made in response to customer feedback regarding too much range and product duplication.
“We have 13 basic table salts, we don’t need those. We might go to five, and we might add three different types of salt to give customers more choice,” she explained.
This move is designed to make it easier for customers to find what they’re looking for, without feeling overwhelmed by too many options.
The Reason Behind the Change
The increase in duplication and product range can be attributed to a legacy of COVID, when more products were stocked due to global shortages.
However, Coles has now recognised that this has led to complexity and has decided to simplify its product lines.
By removing duplications and reinvesting in categories that make the most difference to customers, Coles aims to add more choice and be more data-driven in its approach.
The Benefits of Simplification
According to QUT consumer behaviour and retail marketing professor, Gary Mortimer, the reduction in products could potentially reduce retail prices.
“Once you reduce your range, it lowers supermarket costs and hopefully lowers prices,” he said.
Mortimer also noted that reducing the complexity of working with multiple suppliers and their contractual obligations can benefit both supermarkets and simplify the shopper experience.
What This Means for the Future of Supermarkets
Coles and fellow supermarket giant Woolworths have been under investigation from the Australian Competition and Consumer Commission (ACCC) in a supermarket inquiry.
The ACCC has taken both Coles and Woolworths to court for allegedly misleading customers about discounts on products.
However, Coles has stated that it takes compliance with Australian Consumer Law very seriously and is committed to building trust with its stakeholders.
The Bottom Line
By simplifying its product range, Coles aims to make shopping easier and more efficient for its customers.
With a focus on removing duplication and adding more choice, Coles is hoping to improve the overall shopping experience.
As the supermarket giant works to implement these changes, customers can expect to see a more streamlined and customer-focused approach to shopping.