Coles is shaking things up in a big way, and it’s not just about who has the cheapest bananas or the best roast chook anymore.
After losing a staggering $400 million in sales to unexpected rivals like Chemist Warehouse, Bunnings, Amazon, and even online upstart Temu, Coles is making a bold play to win back your dollars in the health, beauty, and household aisles.
For years, the supermarket giants have been locked in a tug-of-war over groceries, but while Coles and Woolworths have been busy battling it out over bread and milk, other retailers have quietly muscled in on everything from vitamins to vacuum cleaners.
The result? Coles has been left watching as shoppers fill their baskets elsewhere for everything from mascara to dishwashing liquid.
A wake-up call for Coles
Leanne White, Coles’ newly appointed general manager for health and home, has called it as she sees it: ‘We have stood still.’
In a refreshingly candid admission, she says Coles has been too focused on the traditional supermarket model and hasn’t kept pace with the broader market. ‘We really, really need to lift our eyes,’ she says.
And she’s right. The health, beauty, and household sector is a massive market, and it’s not just about shampoo and soap.
We’re talking makeup, supplements, cleaning products, and all those little extras that make a house a home.
While Coles and Woolworths have been busy with the basics, Bunnings has become a go-to for laundry detergent, and Chemist Warehouse is now a beauty and fragrance juggernaut.
Even The Reject Shop is in on the action, offering household staples at prices that make the big supermarkets look expensive.
The rise of the non-supermarket superstars
It’s not just the bricks-and-mortar stores that are giving Coles a run for its money. Online marketplaces like Temu have swooped in, offering everything from electric toothbrushes to kitchen gadgets at prices that seem too good to be true.
Why pay $25 or more for a toothbrush at the supermarket when you can get one online for just over $10?
And let’s not forget Amazon, which has become a one-stop shop for everything under the sun, often with free delivery thrown in.
The result? Australians are increasingly shopping around, picking up their groceries at Coles or Woolworths, but heading elsewhere for everything else.
A new game plan
So, what’s Coles doing about it? For starters, they’re asking their suppliers in the health, beauty, and household categories to share their promotional plans up to a year in advance.
The idea is to get ahead of the curve, spot trends early, and make sure Coles is offering the right products at the right prices, at the right time.
By moving to a 9- to 12-month planning cycle, Coles hopes to be more agile and responsive to what customers actually want.
‘Many of our suppliers are already adopting this best-practice approach, with this enhanced planning allowing us to be agile to customer trends,’ says White.
The stakes are high. Coles estimates that non-supermarket players have siphoned off about $100 million a year from this sector over the past four years.
But with a more strategic approach, Coles believes it could claw back as much as $1 billion in annual sales.
What does this mean for shoppers?
For everyday Australians, this could be good news. More competition usually means better prices, more choice, and sharper promotions.
If Coles is serious about taking on the likes of Chemist Warehouse and Bunnings, we could see more aggressive discounts on health and beauty products, expanded ranges, and maybe even some exclusive deals.
It also means that the days of doing all your shopping in one place might be over. As Woolworths’ chief Amanda Bardwell pointed out, Australians are increasingly shopping at multiple retailers to get the best price.
The savvy shopper is now a comparison shopper, and the big supermarkets know it.
SUPERMARKET WARS 🛒 Coles and Woolworths have dropped their prices on hundreds of items. #TMS7 – Straight after Sunrise, weekdays on Channel 7 and 7Plus
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The future of the supermarket aisle
This shake-up is part of a bigger trend. Supermarkets are no longer just about food. They’re becoming one-stop shops for everything from skincare to smart home gadgets.
But with so many players in the game, the pressure is on for Coles to innovate, adapt, and—most importantly—listen to what customers want.
Will Coles’ new strategy pay off? Will we see prices drop and shelves fill up with new and exciting products?
Only time will tell, but one thing’s for sure: the battle for your basket is heating up, and that can only be a good thing for Aussie shoppers.
What do you think? Are you loyal to Coles for your health and household buys, or do you shop around?
Have you found better deals at Chemist Warehouse, Bunnings, or online? Share your tips, tricks, and shopping stories in the comments below—we’d love to hear how you’re stretching your dollar!
Also read: Coles slashes prices on winter essentials—how much will you save?
