Coles Express

Eureka Operations Pty Ltd
trading as Coles Express

Type	Subsidiary
Founded	July 2003
Headquarters	Hawthorn East, Victoria,  Australia
Number of locations	625
Industry	Automotive and retail
Products	Petrol, convenience and grocery
Revenue	▲ A$6,273 million (2009)
Operating income	▲ A$67 million (2009)
Parent	Wesfarmers
Website	www.colesexpress.com.au

Coles Express is an Australian chain of fuel and convenience stores. The business venture and corresponding fuel discount offer was launched in July 2003 in response to the similar offer by rival Woolworths Limited some years earlier, proving attractive to shoppers.

Coles Myer purchased the retail business of Shell Australia multi-site franchisees in 2003 for A$94 million.^[1] Shell is the exclusive supplier of fuel products, leases the service station property to Coles, and maintains the presence of the "pecten" and other Shell branding on the price board and other signage.

Approximately 249 independently franchised Shell service stations, particularly in country areas, remain unassociated with Coles Express, however the company has an agreement with 19 outlets where the fuel discount offer is accepted.^[2]

History

The Coles Express brand originally referred to a small number of medium-sized supermarkets Coles ran in the central business districts of Melbourne, Sydney and Brisbane. With the launch of Coles' fuel offer, these were rebranded Coles Central.

The current Coles Express chain started at more than 150 service stations in Victoria on 28 July 2003.^[3] After this initial trial, it was followed by a national roll-out from 1 December the same year, starting with New South Wales, and completed in mid-2004. The initial success of the discount offer saw fuel shortages in Victoria after the offer began in New South Wales – where Shell's busiest sites are located – as Shell failed to cope with the distribution of a 30 percent increase in demand.^[4]

There are now 625 Coles Express service stations across Australia.^[5] All former Shell multi-site franchisee sites became Coles Express stores. This transition included the petrol stations and stand-alone Shell Select convenience stores in Melbourne's CBD (which closed by December 2006).

On 20 February 2006, 90 vehicle servicing bays at Coles Express service stations (formerly part of Shell's Autoserv and AutoCare network) became Kmart Tyre and Auto Service outlets.^[6]

The Coles and Shell alliance

The Coles and Shell commercial alliance involves:

Coles:

• Setting fuel and shop prices and running the business
• Management under the 'everyday needs' business within Coles Group
• Convenience and grocery merchandise provided by Coles Group's supply chain and distribution network
• Directly employing the service station staff

Shell Australia:

• Exclusive supplier of fuel, oil, lubricant and car-care products
• Leases the service station property to Coles
• Maintain its "pecten" and other Shell branding on site signage

Fuel discount offer

A fuel discount voucher

Everyday offer

When a customer spends over a qualifying amount (typically $30) in one transaction at Coles Supermarkets, Bi-Lo, Coles Central, Pick 'n Pay Hypermarkets, Liquorland or at Coles Online, they are entitled to a fuel discount of 4c per litre off the bowser price at Coles Express service stations. This discount is obtained by providing a discount voucher, printed at the bottom of their receipt, and includes all of Shell's "quality fuels" such as V-Power, E10 and LPG.

On 7 June 2007, Kmart joined the 4c fuel discount offer, only as a "limited time" until 1 August when it became permanent. This offer does not include Kmart Tyre and Auto Service transactions.

The discount offer does not apply to Shell Card, Fleet Card, Motorpass or Motorcharge transactions.

Bonus offers

An additional "bonus" discount was introduced in late 2006, with a further 2c per litre fuel discount when customers spend $2 in-store in the one transaction.^[7] The offer was made permanent in April 2007 after rival Caltex Woolworths created a similar offer of an additional 4c discount if customers spend $5 in the one transaction at their petrol stations.

Other variations of the fuel offer have been offered from time to time including:

• In the lead-up to Christmas 2006, the 4c offer increased to 10c for customers spending $80 and over in one transaction at Coles Supermarkets; this offer was extended for a further short time in attempt to boost Coles' sales figures.
• Occasionally Liquorland offers a 20c-per-litre discount offer when customers purchase six bottles of wine in one transaction.
• Kmart Tyre and Auto Service has offered a 30c-per-litre discount offer when customers purchased four certain tyres in one transaction.
• From 13 to 15 July 2009, the discount was increased to 10c for customers that spent over $100, 25c for customers who spent over $200 and 40c for customers who spent over $300.^[8]

Even during these bonus offer, the Coles Express price board will always promote just a "4c" offer, due to technical limitations.

Gallery

Coles Express Clontarf, Queensland

Coles Express Wagga Wagga, New South Wales

References

External links

• Coles Express