In a shock move, Coles has offloaded a major section of its core retail offering with the sale of its 710 Coles Express petrol stations.
The service stations were sold to long-term petrol partner Viva Energy in a $300 million sale.
Coles says it wants to concentrate on its core business of grocery and liquor sales and a desire to work towards net zero emissions.
No doubt removing an estimated $816 million in lease costs from the books also contributed to the move, given the brand took a horror hit during the pandemic with earnings for the 2021–22 financial year dropping by 37 per cent.
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Coles had planned to win customer loyalty with its discount docket scheme, but industry regulation eroded those down to four cents per litre as opposed to up to 40 cents per litre in its early days. And with petrol regularly hitting over $2 a litre for the past six months, four cents just didn’t hold great appeal.
Coles will continue to supply products to the service stations and honour the fuel discount program, however the branding will be slowly erased over the next three years.
The Coles group said the sale was also motivated by its desire to hit its environmental goals.
“Selling the petrol stations would help Coles achieve its climate change targets, including net zero carbon emissions by 2050,” Coles chief executive Steven Cain told goauto.com.au.
Viva plans to extend its services at the fuel stations to include charging stations and hydrogen refuelling.
Woolworths sold its interest in fuel stations in 2019.
This week’s best deals
Aldi
Sensible: Jindurra Station porterhouse, $19.99/kg. Good price for beef with red meat increasingly becoming a treat for many households. Celebrate spring and enjoy a grilled steak and salad.
Read: How to beat the petrol price hike
Indulgence: Outdoor living and barbecue special buys. If you’re grilling steak then you will need lots of barbecue accoutrements. Naturally, Aldi has stuff you never thought you needed but of course you do now you’ve seen them – such as magnetic barbecue accessory holders, barbecue floor mats, grill sheets and meat thermometers.
See the catalogue here.
Woolworths
Sensible: Cold Power laundry liquid and powder, half price at $9.75. Yes, it’s boring, but it’s good for your laundry and good for your power bills. If you are serious about going green, my tip is to buy the powder in the cardboard box as it can break down, unlike the plastic container. Your planet will thank you.
Indulgence: Allen’s lollies medium bags, half price at $1.80. Allen’s seems to put out a new flavour every month or so. This time it’s Tropical Whirlz, which are tropical-flavoured jellies. I’m trying them ‘for research purposes’. If anyone from Allen’s is reading this, please bring back Frosty Fruits flavour. I’m begging you.
See the catalogue here.
Read: Another famous Aussie brand heads overseas
Coles
Sensible: Fairy dishwashing cleaning range, half price. The big daddy of this whole-of-range special is the Platinum Plus dishwashing tablets at $22.50, saving $22.50. Hard to believe anyone would pay $45 for a bag of dishwashing tablets, but each to their own.
Indulgence: Vittoria Mountain Grown or Organic Coffee Beans, $19.25, save $19.25. Another astonishing half-price special. With these beans, you’ll be wide awake to really enjoy the price savings.
See the catalogue here.
IGA
Sensible: Lettuce, $1.99. Who’s glad to see lettuce back from its eye-watering heights? Just in time for spring and summer salads. Better get in quick, because with more floods predicted, it could be back to luxury-level prices again very soon.
Indulgence: Bulla Murray St ice cream, four-pack varieties, half price at $5. Good price for a quality product. The selection of rich flavours means you wouldn’t want to eat a lot of these, but for can’t-be-bothered treats you can just grab from the freezer they’re perfect. Plus Bulla is still Australian owned in a market where that is increasingly rare.
See the catalogue here.
Do you shop around for petrol or do discount dockets keep you loyal? Why not share your tips in the comments section below?
