In a bid to combat the escalating issue of retail theft, Coles has successfully reduced the volume of groceries lost to shoplifting. However, the supermarket giant’s staff continue to face threatening situations as the retail industry grapples with widespread theft and organized crime across Australia.
Coles’ Chief Executive Leah Weckert announced that stock-loss volumes have returned to 2015 levels following the implementation of several theft-prevention measures. These include advanced camera monitoring systems known as “skip scan,” automated security gates referred to as “smart gates,” and innovative “bottom of trolley” technology deployed in hundreds of stores nationwide.
Challenges in Retail Crime Prevention
Despite these advancements, Weckert acknowledged ongoing challenges. “During that period, as we have improved on loss, the market has not,” she stated. “Despite the investments that we’ve made in safety initiatives for our team, we are continuing to see increases in threatening situations in store. And it is definitely the case that in Victoria, retail crime is escalating more than what we are seeing in other states.”
Retailers across Australia are increasingly vocal about the growing problem, which is not only affecting sales but also endangering the safety of frontline staff. Dan Murphy’s and BWS have introduced body-worn cameras and augmented technology to assist in staff training, while Rebel Sport has reported a dent in margins due to persistent theft.
Coles Group sales rose 3.6 percent to $44.35 billion, with underlying net profit increasing 3.1 percent to nearly $1.2 billion.
Economic Impact and Strategic Responses
The financial performance of Coles has remained robust, with its grocery business growing sales by 4.3 percent to nearly $40 billion. The company attributes this growth to a strategic focus on fewer, deeper promotions and maintaining everyday low prices on a wide range of products throughout the year.
Weckert emphasized the importance of quality, value for money, availability, and customer experience in improving customer-experience metrics, which has led to larger basket sizes and an increase in the number of transactions. This positive financial outcome was well-received by investors, resulting in an 8.1 percent rise in Coles’ share price.
Consumer Behavior and Future Outlook
As interest rates decline, Coles is closely monitoring how cost-conscious consumers will react. Current behaviors such as cutting back on treats, cross-shopping, and using loyalty points remain prevalent. “I think we’re seeing those green shoots around sentiment. The question is going to be: when do we start to see some of the behavior change and catch up with that? The timing on that is a bit unclear on this,” Weckert noted during a press briefing.
Looking ahead to the summer months and the Christmas season, Weckert expressed optimism that consumer behavior might shift towards more social activities, such as dining out and gathering with friends. “As we head into the summer months and we head into Christmas, that will be something we’ll keep a strong eye on because I think that will be the pull for customers to start to return to some of their behaviors around going out a bit more and catching up with friends at the park or at a restaurant,” she added.
The announcement comes as the retail sector continues to adapt to the challenges posed by organized crime and theft. As Coles and other retailers implement advanced security measures, the industry remains vigilant in protecting both their assets and the safety of their employees.
