Coles has lost a staggering $400 million in sales to unexpected rivals such as Chemist Warehouse, Bunnings, Amazon, and online marketplace Temu. This major loss is primarily in the health, beauty, and household categories — areas that supermarkets like Coles once dominated but have now ceded ground to non-traditional competitors. In this article, we explore how Coles plans to claw back these lost sales and reassert itself as a leader beyond groceries.
The Health, Beauty, and Household Challenge for Coles
For years, Coles and Woolworths focused mainly on groceries, battling each other for everyday essentials like bread and milk. Meanwhile, other retailers quietly muscled in on the lucrative health, beauty, and household sectors. As a result, many Australian shoppers are buying vitamins, makeup, cleaning products, and home goods from places other than their local supermarkets.
Leanne White, Coles’ newly appointed General Manager for Health and Home, admitted candidly:
“We have stood still. We really, really need to lift our eyes.”
This wake-up call acknowledges that Coles’ traditional supermarket model has not kept pace with evolving consumer habits. Competitors like Chemist Warehouse have grown into beauty and fragrance juggernauts, Bunnings sells laundry detergents and household essentials at competitive prices, and The Reject Shop offers staples that make Coles’ prices look expensive.
Even online marketplaces like Temu and Amazon have disrupted the space by offering low-cost health and household products with convenience and speed.
Why Has Coles Lost $400 Million?
Coles estimates it has lost about $100 million annually over the past four years in the health, beauty, and household aisles alone. The combined $400 million loss highlights how shoppers have shifted their spending patterns. Instead of filling all their needs at supermarkets, Australians now shop around, often splitting purchases across multiple retailers to secure the best deals.
Online competition plays a big role. Why pay $25 for an electric toothbrush at a supermarket when Temu sells it for just over $10? Amazon offers everything from kitchen gadgets to beauty products, often bundled with free delivery.
This change in consumer behavior has cost Coles dearly, making it clear the supermarket must adapt or continue losing market share.
Coles’ Bold New Strategy to Reclaim Sales
Coles’ response to this challenge is a more strategic, forward-thinking approach. Leanne White and her team are implementing a 9- to 12-month planning cycle with their suppliers in the health, beauty, and household categories. By asking suppliers to share promotional plans well in advance, Coles aims to:
- Identify emerging trends early
- Offer the right products at the right prices
- Coordinate sharper promotions and product availability
White explains:
“Many of our suppliers are already adopting this best-practice approach, with this enhanced planning allowing us to be agile to customer trends.”
This proactive planning is designed to make Coles more competitive and responsive in a market where timing and relevance are everything.
What This Means for Shoppers
For consumers, this shake-up could be very good news. Increased competition typically drives:
- Lower prices
- More frequent and attractive promotions
- Expanded product ranges
- Exclusive deals unavailable elsewhere
As Woolworths’ chief Amanda Bardwell noted, Australians are increasingly “shopping around” to get the best value. The one-stop-shop supermarket model is evolving into a multi-retailer approach where consumers compare prices and products across stores.
If Coles succeeds in its new strategy, shoppers can expect better bargains and more choice within the health, beauty, and household aisles at their local supermarket.
The Bigger Picture: Supermarkets Beyond Groceries
Coles’ $400 million loss and strategic pivot reflect a broader trend: supermarkets are no longer just about food. They are becoming destinations for diverse categories, including skincare, supplements, cleaning products, and even smart home devices.
However, the rise of specialized retailers and e-commerce platforms means supermarkets like Coles face fierce competition. The battle for your shopping basket now spans multiple industries and retail formats.
Only time will tell if Coles’ fresh approach will pay off. What is clear is that the supermarket giant understands it must innovate, listen to customers, and move quickly to regain lost ground.
Conclusion
Coles is making a significant push to recover the $400 million in sales lost to rivals in the health, beauty, and household categories. By extending its planning horizon and collaborating closely with suppliers, Coles aims to be more agile, competitive, and customer-focused.
For Australian shoppers, this means better prices, more promotions, and a wider range of products available right alongside their groceries. The competition is heating up, and that’s great news for anyone looking to save big on their next shop.
