Coles Myer Is Australia's Largest Retailer

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Coles Myer Coles Myer is Australia’s largest retailer with more than 1,800 stores throughout Australia and New Zealand. The company’s aim is to create benefits for every stakeholder by being the best retailer in every market in which the company operates. Coles Myer is the Australia’s largest non-government employer with over 160,000 staff and spends approximately $19 billion a year buying merchandise and services from over 61,000 suppliers. There are various factors undermining the decline of Coles Myer performance and shareholder value, both externally and internally. In this report we will analyse Coles Myer, in terms of major financial, marketing and organisational drivers presently influencing the company’s shareholder value by…show more content…
Clear market positioning is essential for retailing industry. Coles Myer suffers from the lack of focus and clear strategy due to the fact that the company is simply too big to efficiently mange its division. More importantly, Coles Myer is trying to operate a combined strategy, the two are, high-volume, low-margin retailers (e.g. Kmart and Target) and retail specialists focusing on a single retail category (e.g. Officeworks, Megamart and Myer-Grace Bros). Mead (2003: cited in Reading Pack) commented that, these two types of retailing require different retailing skills and different corporate and marketing strategies and separate and therefore, independent organisational structures. Furthermore, there diversified interest in Coles-Grace Bros, Target and Kmart do create a cannibalistic effect. By offering product discounts with no convergence to the business strategies of the other two, detrimental effects on the sales performances across all three brands do occur. 3.2 Customer Loyalty Hannen (2001: cited in Reading Pack) said that keeping existing customers is cheaper than finding the new ones. However, the retailing industry is a ‘generic market’ and a lot of effort is needed to build meaningful relationships with the consumers. Coles Myer has done very poorly in retaining existing customer in two ways. Firstly, “Fly Buys” as a loyalty program is not appealing to consumers as they have to spend a significant amount to attain rewards. The

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