Coles Tests New C-Store Brand

Big Yum at Little Coles is the supermarket chain’s latest entry to the Australian c-store market.

August 09, 2016

MELBOURNE – Australian retailer Coles is testing a new convenience store brand, called Big Yum at Little Coles, as the supermarket chain looks to expand into the convenience sector, writes SmartCompany.com.

The news source notes that three of the stores are up and running in Melbourne, and are selling coffee at 80 cents a cup and a range of healthy snacks. The stores are intended to compete with 7-Eleven with offers such as the “Guzzle Bomb,” noted as a Slurpee alternative.

While Coles will strive to offer merchandise at its Big Yum stores at supermarket-level pricing, Gary Mortimer, an associate professor at the Queensland University of Technology, told the news source that this will be difficult to achieve. “Running a supermarket and running a convenience store are very different, it’s hard to hold supermarket-style prices due to the higher wages for convenience store workers,” he told the news source. “The profit margins are quite small, so I believe they will have convenience-like pricing.”

Big Yum stores will put a spotlight on healthier choices, with products including fresh produce, fruit, wraps, sushi and sandwiches. 

Simon McDowell, director of Coles Express, told The Australian that the company will be “closely watching the performance of these proof-of-concept sites and will look to incorporate successful elements of the format elsewhere in the store network.”

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