Wesfarmers grows faster with great shopper experience

All attention is on Coles and Wesfarmers after growth figures announced late last week show Coles growth rates getting back on track. Here I’ll reflect on the numbers, and how Coles’ growth is very much a product of its moves to improve shopper experience.
With Coles annual growth rate reported at 7.3% like for like, just 0.6% behind Woolworths, what we’re really seeing is the fast transformation of a tired retailer.

This blog isn’t about the results – the scoreboard – it’s about what’s been happening with each shopper interacting in the new Coles shopping environment; one that was desperately in need of some clarity and loving!

Coles is now giving shoppers a better experience as each week passes.

Remember the old days when Coles stores were a little dull? There may as well have been guards at the gates, so big were the security barriers at the entrance. And in some stores if you walked back through them an alarm went off! Anyone could have been forgiven for feeling guilty before they even entered a store!

Then there was the cluttered environment. Busy shelves, messy aisles and messy POS.

And who was Coles anyway? Can you even remember its previous slogan in the shadow of Woolworths the “Fresh Food People”, a consistent and well-lead brand that offers its customers “fresh ideas” and whose stores have been brighter, fresher looking and are still positioned as the destination for buying fresh groceries.

Coles has been on a path of recovery. It’s been playing catch-up, but at a far faster speed than anyone expected. But how has it done it?

A few key areas of change are evident in Coles stores today – even before you enter.

Let’s start with what’s obvious before we enter: the tag line “Coles, it all counts”. While Michael Luscombe’s team at Woolworths has launched a re-brand, further ensconcing its positioning in shoppers minds as the leading fresh grocer, Ian McLeod and his team wasted no time in his tenure to quickly position Coles as a value destination. The “it all counts” has successfully been incorporated into every piece of customer communication, from TV advertising to website, catalogue and in-store signage and dockets.

Then there’s Coles’ brand-new event driven strategy, illustrated by its successful campaign “Feed your family for under $10”, hosted at present by celebrity chef Curtis Stone.

On walking past your local Coles it’s hard not to notice the smiling chef’s message and succulent food images – and that draws in customers. They’re also navigated around the store by more event signage, making the shopper experience helpful, efficient and inspirational.

But while you were being wooed by Mr Stone, did you even notice that you entered the store via new wider, barricade-free aisles? I bet you didn’t stop to think. You would have brushed through and into the store more quickly, easily and without hesitation.

No longer does Coles seem guarded and therefore uninviting. On the contrary, you are invited into the store and, what’s more, even greeted at the entry by brilliant displays of bright, fresh flowers.

This is all a significant shift in shopper experience.

And the overall in-store experience is also on the up. In new store formats shelving is lower, aisles appear wider, floors are clean and clutter-free, lights are brighter and pricing is clearer. It’s all evidence of the concerted effort the store is making to differentiate itself from other retailers.

Clearly it’s working, and at a time when more retailers are offering us more shopping environments and choices than ever before. As the market sees a boost in competition with the entry of Costco, plus ALDI’s and IGA’s continuing expansion, retailers will increasingly focus on the areas where they can add value for their own shoppers. They’ll keep them coming back with a shopping environment that these regular shoppers love. 

Never forget that Australia, like the US, is a growth market. We have more people arriving each year, spending more money each year. That’s why we remain attractive to our traditional retailers, are a good incubator for innovative growth players like JB HiFi, and are becoming more attractive to new international entrants.

In his role as CEO of CROSSMARK, Kevin Moore looks at the world of retailing from grocery to pharmacy, bottle shops to car dealers, corner store to department stores. In this insightful blog, Kevin covers retail news, ideas, companies and emerging opportunities in Australia, NZ, the US and Europe. His international career in sales and marketing has seen him responsible for business in over 40 countries, which has earned him grey hair and a wealth of expertise in international retailers and brands. CROSSMARK Asia Pacific is Australasia’s largest provider of retail marketing services, consulting to and servicing some of Australasia’s biggest retailers and manufacturers.

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