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Coles chief executive Steven Cain told investors at the company\u2019s annual general meeting on Wednesday that next year will be \u201cone of the most transformational\u201d in the supermarket\u2019s 108-year history. Continued investment in logistics, as well as a pipeline of new stores, are set to drive growth for Coles, despite the ongoing impact a higher cost-of-living is having on its customers, and inflation is having on its suppliers.\u00a0 \u201cWe\u2019ve set out differentiators in our strategic plan, a<\/p>\n
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\n <\/div>\nThis article is for the Professionals<\/h2>\n
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Already a professional? Log in<\/span>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n lan, and we continue to make good progress against all of them,\u201d he said.<\/p>\n According to Cain, the retailer\u2019s main differentiators are its own-brand products, which number around 6000 items, more than its competitors, and its Flybuys loyalty program, which touches around 20 per cent of all retail expenditure in Australia.<\/p>\n The loyalty program, which is jointly owned by Coles and Wesfarmers, is now available to shoppers at Bunnings and Officeworks, giving both businesses substantial data on their customers\u2019 purchasing behaviour.<\/p>\n Given the range of data breaches that have occurred in the last month or so, investors were keen to understand how Coles is keeping customer data safe.\u00a0<\/p>\n Coles chairman James Graham explained that the supermarket\u2019s customer data platform is independently reviewed by data experts each year in order to ensure it is up to scratch, and the business has been upping its investment in data security over the last several years.<\/p>\n \u201cWe are on constant red alert to the risks [of a data breach], and are constantly investing to ensure we can maintain the security of the data we have,\u201d Graham explained.<\/p>\n At the meeting, Graham was successfully reelected, though he is expected to retire during his term.\u00a0<\/p>\n Sustainability aims questioned, defended<\/p>\n Of all the industries within retail, Australian supermarkets have arguably been leading the charge with investing in more sustainable and ethical solutions. In fact, one of Coles\u2019 main goals is to become Australia\u2019s most sustainable supermarket.\u00a0<\/p>\n However, questions were asked during the AGM about the business\u2019 commitment to its environmental efforts.\u00a0<\/p>\n One investor asked Coles if it would back down from the sale of fruit and vegetables that are not covered in plastic, and if it had a Plan B in mind for \u201cwhen it\u2019s accepted that climate change caused by man is nowhere near the levels the renewables industry is claiming\u201d.<\/p>\n Graham was clear in his answers.<\/p>\n \u201cWe don\u2019t want to add to environmental issues, [and] we are very focused on sustainability, and living responsibly,\u201d Graham said.<\/p>\n \u201cWhat we\u2019re hoping to do with all of our customers is to create a sense of trust in terms of the price, the quality, and the commitment to sustainability. If we balance all those items, we believe we\u2019ll get more customers, and more support.\u201d<\/p>\n Graham also backed the business\u2019 aim to hit net zero emissions in the Coles business by 2050. It aims to be powered entirely by renewable energy by FY25, and to reduce its combined Scope 1 and 2 greenhouse gas emissions by more than 75 per cent by the end of FY30.<\/p>\n \u201cWe don\u2019t make these commitments lightly, [and] we make them because we know the importance of them,\u201d Graham said.<\/p>\n \u201cWe still have work to be done, and we will be measured by our stakeholders in terms of our achievements in time, but I\u2019d have to say that our \u2018Plan A\u2019 is pretty robust.\u201d<\/p>\n Whether the infrastructure exists for Coles and other retailers to meaningfully reduce their environmental footprints is less certain.\u00a0<\/p>\n Just this week, soft-plastic recycler Redcycle confirmed that it has indefinitely suspended its collection and recycling scheme due to challenges \u201cexacerbated by the pandemic\u201d. Its recycling partners are unable to keep up with demand.\u00a0<\/p>\n According to Redcycle, there has been a 350 per cent increase in the amount of soft plastic recycled since 2019. The company has bins in many major retailers, including Coles, where customers can drop off soft plastics, which can\u2019t be recycled at the kerb.\u00a0<\/p>\n Environment minister Tanya Plibersek called the situation \u201cunfortunate\u201d, but said that ultimately the supermarket sector should be able to figure something out.<\/p>\n \u201cIt shouldn\u2019t be beyond these big supermarkets to come up with a viable solution to allow Australians to continue to recycle,\u201d she said, according to SMH.\u00a0<\/p>\n \u201cI expect Coles and Woolworths to step up and indicate how they will deal with soft plastic recycling. We\u2019re happy to work with them to achieve this.\u201d<\/p>\n<\/div>\n