Coles Group (ASX:COL) identified around AU$500 million in sales that Australian supermarket players have lost to non-grocery rivals in recent years, The Australian reported on Monday, citing an internal analysis by the ASX-listed retail chain.
Coles alone has allegedly lost around AU$100 million annually over the past four years as shoppers found options to buy products elsewhere, particularly in the health, beauty, and home categories. The entire supermarket industry, meanwhile, is believed to have lost 2% of market share to rivals in the same period.
This was due to rising competition from non-grocery rivals such as pharmacies, whose product offerings go beyond medicines to include everyday essentials like toilet paper and beauty products, The Australian said. The convenience of online marketplaces also weighed on sales, per the report.
To address this, Coles has embarked on various initiatives such as investing more in its health and home category and promoting bulk-sized grocery items.
Coles did not immediately respond to a request for comment by MT Newswires.
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