Supermarket giant Coles has expanded its Coles Local store concept into Queensland with the reopening of its Ascot supermarket in Brisbane on Wednesday morning. The store format, which is customised for each location, features a range of gourmet produce from local suppliers including speciality growers, bakers, producers and cafes. Speaking from the opening today, Australian retail expert and QUT professor of marketing Gary Mortimer told Inside Retail about the “highly curated range”.
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Coles Local Ascot features a curated range of gourmet produce. Image credit: Gary Mortimer
“The big thing I’m seeing here is a massive amount of collaborative marketing. Coles is ranging local products like Jocelyn’s Provisions, Meat at Billies, brands that exist within their own right here in Brisbane,” Mortimer said.
The range which features gourmet cakes and pastries, artisan sourdough breads and brioche buns, as well as award-winning meats and premium ready-made meals, has been tailored to suit the needs of the “upperclass” consumer base in the area.
Cheese selection in Coles Local Ascot. Image credit: Gary Mortimer.
“It’s a high income area … an older community, older retired couples and professional working couples,” Mortimer said.
The Ascot store, which first opened in 2011, has a renewed focus on sustainability with free recycled customer carry boxes on offer, an eco-friendly product selection, energy-efficient fridges and trolley baskets made from recycled materials.
Team uniforms are also made from 65 per cent recycled bottles.
Exterior of Coles Local Ascot. Image credit: Gary Mortimer.
Backing local
The Coles Local concept was first introduced in Melbourne’s Surrey Hills in 2018 before expanding the concept to locations at St Kilda, Glenferrie and Fitzroy. The first New South Wales store opened in Sydney’s Rose Bay last year and locations at Manly, York Street and Chatswood followed.
IGD Research listed Coles Local as one of the top 30 food retail stores worldwide to visit in 2020 following a study of over 1000 food retail stores in over 45 different countries.
The move into Queensland signals a strong belief in the power of local shopping, which boomed during the pandemic, despite signs that consumers are slowly returning to their old shopping habits. At the company’s Q3 results in April, Coles chief executive Steven Cain said that there are strong indicators that the trend towards local shopping is beginning to unwind.
“We’re beginning to see customers returning to the CBD, as they return to work. And we’re beginning to see customers not only returning to shopping centres, but shopping at supermarkets within shopping centres. That really started to happen post the removal of masks in Victoria, which I think gave people a bit more confidence,” Cain said.
Coles is actively expanding the Local format, alongside its traditional larger format supermarkets, in a bid to rival Woolworths’ Metro stores, both standalone and in partnership with Ampol.
Mortimer believes Coles will continue to grow both formats to cater to varying consumer needs.
“On Saturday, [Coles] opened a full-line supermarket here in Queensland, but then two days later they are opening a Local store. I think it goes to show that supermarkets in general are actually manipulating their fleet of stores to fit into certain communities and respond to consumer change.”
Inside Retail has contacted Coles for comment.