Coles Group Ltd

Founded in 1914, named after the surname of its founder, Coles began as a single variety store in the Melbourne suburb of Collingwood. For the first few decades it was essentially an early 1900s version of ‘The Reject Shop’ offering discounted items. It famously boasted ‘Nothing over 1/-‘ (1 shilling). Over the decades, the company grew organically and through acquisitions, including liquor retailers and fuel convenience stores, to build a diversified retail portfolio. In the late 1940s it got into cosmetics and foodstuffs as married women entered the workforce. During the 1960s, by which time it was run by Edgar Barton Coles (one of 7 of George Coles’ sons) it opened freestanding supermarkets – the first of which was in the Melbourne suburb of Balwyn. The plan was it would be a one-stop shop for families to get everything on a weekly shopping list. And so it is to this day. The 1980s saw the introduction of electronic scanners and printed receipts as well as many of its forays including into liquor. 1985 was a key year as it merged with Myer and listed on the ASX. Flybuys was introduced in 1993 and it launched the first service station in 2004. In 2007, Coles was acquired by Wesfarmers, for $19.3bn in what was then the highest takeover in Australian history. It has since been surpassed multiple times, most recently by AirTrunk in 2024. Although under Wesfarmers’ ownership it underwent significant restructuring and modernisation, Wesfarmers wanted a return on investment and also believed the company now warranted its own board. And so in late 2018, Coles demerged from Wesfarmers and was relisted as an independent company on the ASX, refocusing on its core supermarket and liquor operations. Coles relisted at $12.49 per share and has gained over 70% since then – albeit flatlining except in the last 12 months. The pandemic didn’t result in stores being closed but did result in supply chain disruptions. It emerged from those difficult times and has had a better couple of years than Woolworths as cost-conscious consumers opted for Coles.