COLES GOES 3 FOR 2

Coles, Surry Hills. The new merchandising and in-store marketing approach being adopted by Coles has a focus on 'savings'. It includes a quite effective 3 for 2 offer, and good use of a scissors price cut device throughout the store. This has no doubt mostly been financed by suppliers. Also of note is the more effective merchandising of the rear corners of gondolas to break straight lines and capture attention. There is a good use of reminder signage throughout the store. The colours are true to the Coles brand and signify value. This is a good illustration of how the in-store experience can be significantly lifted without spending capex. Long overdue, it suggests a change of management thinking, upping the competition stakes. It will be interesting to see if it can be sustained.