Wikimedia Commons
Australian grocery giant Coles is all set to remove at least 10% of its products in an effort to make shopping simpler for customers.
Coles’ double-digit rationalization plan came after customers shared feedback that there were too many options and some products were repetitive and not required.
The company’s chief operations and sustainability officer Anna Croft had shared with investors in November how simplifying the product range could benefit the company. She also addressed customer feedback about too many choices and product repetitions, 7News reported.
For example, instead of having 13 types of basic table salt, Coles might reduce it to five, while still offering a few different varieties for customers. Similarly, in their haircare range, Coles currently offers six different pack sizes, from 80 ml to 1.1 liters, which creates unnecessary complexity.
The company plans to reduce this to three sizes and work with the manufacturer to optimize the range, improving availability and efficiency.
Croft explained that the company aimed to offer more choice while being data-driven and careful about selecting the right categories, as customers said having too many products and repetitions made shopping difficult, 9News reported.
Even if Coles worked on reducing products for two years, they would still have more variety than they did in 2019. The focus is on cutting down on duplicates, while still offering customers more options.
A Coles spokesperson explained that the increase in product variety and duplication was partly a result of the COVID-19 pandemic, when the stores stocked more items due to global shortages.
Professor Gary Mortimer from Queensland University of Technology said that reducing the number of products could lead to lower retail prices. He noted that when customers were given too many choices, they often became overwhelmed and made poor decisions.
By cutting down on products, supermarkets can reduce costs, which could help lower prices. Mortimer also mentioned that simplifying the range by working with fewer suppliers can make things easier for both the store and shoppers.
Coles is currently being investigated by the Australian Competition and Consumer Commission (ACCC) overpricing practices and the relationship between wholesale and retail prices. The ACCC has taken the supermarket to court for allegedly misleading customers about discounts.
The investigation report is expected to be completed by the end of this month.
