Coles Myer

Coles Myer Ltd. is an Australian public company which operates a number of retail chains.

Table of contents

1 Early History 2 Businesses 3 Corporate Issues

Early History

The company's history dates back to 1900 when Sidney and Elcon Myer opened a store in Bendigo. Separately, in 1906 the first Coles "variety store" was opened in Melbourne. Both chains grew throughout Australia through growth and acquisitions, and both independently listed on the Australian stock exchange. By the 1980's, Coles primarily operated supermarkets, whilst Myer operated a chain of mid-market department stores. The two companies merged as Coles Myer in 1987.

Businesses

The company now a number of chains of retail outlets, including:

• Myer: upmarket department stores, with a wide selection of name-brand fashion and luxury goods. Very similar stores are branded "Grace Bros." in New South Wales.
• Coles Supermarkets: one of the biggest supermarket chains in Australia.
• Bi-Lo: a slightly less upmarket chain.
• Liquorland: "bottle shops" (Australian term for liquor outlets) attached to Coles stores. The same division also operates "Vintage Cellars", slightly more upmarket standalone shops, and Quaffers.
• K-mart: downmarket department store, roughly equivalent to Wal-Mart stores in the United States.
• Officeworks: Office supplies.
• Target and Target Country': "soft goods" stores, including clothing, manchester, cosmestics, and the like. "Target Country" is the result of rebranding of a chain formerly known as "Fosseys", and operates in country towns with smaller stores selling a subset of the range.
• Baby Target: as the name suggests, a seller of baby-related products.
• Harris Technology:Computer equipment retailer.
• Megamart: Electrical and furniture superstores located in outer-suburban areas.

Corporate Issues

Despite its huge presence in the Australian retail industry, the company's profitability and share price performance has been spotty since the 1987 merger. The company's flagship Myer stores have struggled to cope the emergence of "category killer" retailers in many of its specialist areas, and a trend away from department store fashion and back towards smaller fashion retailers. A sequence of revamps failed to impress the market.

Its supermarket business also faces stiff competition from the Woolworths company, whose supermarkets offer cut-price petrol as a sales incentive. In June 2003, Coles announced that it would take over the operation of Shell's domestic fuel retail outlets, thus giving it the ability to offer similar incentives.

The company also tried the Toys'R'Us format, opening several stores in major cities. These failed, costing the company many millions of dollars.

• Also worth discussing:
  • The corporate fraud.
  • The shareholder discount card.
  • Solly Lew's board tilt.
  • Speculation of demergers.