Coles Express
TypeSubsidiary
IndustryAutomotive and retail
FoundedJuly 2003 (2003-07)
Headquarters
Hawthorn East, Melbourne
,
Australia
Number of locations
723 (2022)
Key people
Leah Weckert (CEO)
ProductsPetrol, convenience and grocery
Revenue$1.1 billion (2022)
$42 million (2022)
Number of employees
4,800 (2022)
Parent
Websitecolesexpress.com.au

Coles Express is an Australian chain of convenience stores at Shell Australia petrol stations. Until it became controlled by Viva Energy in May 2023,[1] Coles Express was a trading name of Coles Group.[2]

The business venture and corresponding fuel discount offer was launched by Coles Myer (predecessor of Coles Group) in July 2003 in response to the similar offer by rival Woolworths some years earlier, proving attractive to shoppers. Coles Myer purchased the retail business of Shell Australia multi-site franchisees for $$94 million.[3] Shell Australia (later also sold to Viva Energy) continue to be the exclusive supplier of fuel products, leases the service station property to Coles, and maintains the presence of the "pecten" and other Shell branding on the price board and other signage.

As of 2012, approximately 270 independently franchised Shell service stations remain unassociated with Coles Express where the fuel discount offer is not accepted.[4]

History

Coles Express on Hornibrook Esplanade, Clontarf, Queensland
Coles Express on Burwood Highway, Vermont South, Melbourne
Coles Express/Hungry Jack's on Elizabeth Street, Hobart

The Coles Express brand originally referred to a small number of medium-sized supermarkets Coles ran in the central business districts of Melbourne, Sydney and Brisbane. With the launch of Coles' fuel offer, these were rebranded as Coles Central with the service stations taking the Coles Express branding.

The current Coles Express chain began at more than 150 service stations in Victoria on 28 July 2003.[5] After this initial trial, it was followed by a national roll-out from 1 December the same year, starting with New South Wales, and completed in mid-2004. The initial success of the discount offer saw fuel shortages in Victoria after the offer began in New South Wales – where Shell's busiest sites are located – as Shell failed to cope with the distribution of a 30 percent increase in demand.[6]

As at July 2021, there were 723 Coles Express service stations and stand-alone convenience sites across Australia.[7] All former Shell multi-site franchisee sites became Coles Express stores. This transition included the petrol stations and stand-alone Shell Select convenience stores in Melbourne's CBD (which closed by December 2006).

On 20 February 2006, 90 vehicle servicing bays at Coles Express service stations (formerly part of Shell's Autoserv and AutoCare network) became Kmart Tyre & Auto Service outlets.[8]

In 2018 Coles Express started trialling standalone convenience sites in Victoria.

Coles and Viva Energy alliance

On 6 February 2019 Coles Express announced a new alliance partnership with their fuel partner Viva Energy (Shell). Under the agreement Viva Energy is responsible for setting the price of fuel and receives the retail fuel margin. Coles Express receives a commission per litre from Viva Energy based on fuel volumes achieved and has no direct exposure to retail fuel price movements.[9]

In addition to setting fuel pricing Viva Energy is the exclusive supplier of fuel, oil and lubricants. Viva also maintains it pecten and Shell branding as well as all fuel dispensing equipment. Coles Express is responsible for the maintenance of the retail store (including in-store pricing) and the everyday needs of the business.

Sale to Viva Energy

In September 2022 Coles Group announced it had agreed terms with Viva Energy to sell the Coles Express retail business. As part of the deal Flybuys will remain a partner and Coles will continue stocking its own-branded products.[10][11][12] The acquisition was completed on 1 May 2023.[13]

Following Viva Energy purchasing the OTR service station chain from Peregrine Corporation, Viva intends to retire the Coles Express brand and rebrand all stores as OTR.[14][15] Due to delays with regulatory approval for the OTR acquisition, Viva announced in September 2023 that it would start transitioning Coles Express stations to a new brand, Reddy Express.[16] Those stations may again be converted to OTR upon approval of the acquisition, with Viva planning for OTR to be its leading brand.[17]

Fuel discount offer

Current fuel discount offers

When a customer spends over a qualifying amount in one transaction at Coles Supermarkets, Coles Central or Coles Online, they are entitled to a fuel discount of 4c per litre or 8 bonus Flybuys points per litre at Coles Express. This discount is obtained by providing a discount voucher, printed at the bottom of their receipt, and includes all Shell fuels. Coles Express also offers a 10c per litre discount on all Shell fuels when a customer spends $20 or more on qualifying products in store, this can be used in addition to the 4c per litre discount voucher.

All discount fuel offers or bonus points offers do not apply to Shell Card, Fleet Card, WEX Motorpass or Motorcharge transactions.

Previous fuel discount offerings

An additional bonus discount was introduced in late 2006, with a further 2c per litre fuel discount when customers spent $2 in-store in the one transaction.[18] The offer was made permanent in April 2007 after rival Caltex Woolworths created a similar offer of an additional 4c discount if customers spend $5 in the one transaction at their petrol stations. The 2c per litre finished on 1 February 2013. Coles Express now offers a "Spend $20 and Save 10 cents per litre" this was launched to an "Everyday" offer in late 2015 and has continued since, variations of this deal are offered occasionally e.g. Buy product X for X dollars and save X cents per litre.

Other variations of the fuel offer have been offered from time to time including:

  • In the lead-up to Christmas 2006, the 4c offer increased to 10c for customers spending $80 and over in one transaction at Coles Supermarkets; this offer was extended for a further short time in attempt to boost Coles' sales figures.
  • Liquorland has offered a 20c-per-litre discount offer when customers purchase six bottles of wine in one transaction.
  • Kmart Tyre & Auto Service has offered a 30c-per-litre discount offer when customers purchased four certain tyres in one transaction.

References

  1. ↑ "Viva Energy completes acquisition of Coles Express". Viva Energy. Retrieved 2023-07-27.
  2. ↑ "Coles Group Limited 2022 Annual Report" (PDF). Coles Group. August 2022. Retrieved 24 May 2023.
  3. ↑ "Fletcher upbeat about Coles Express". Australian Financial Review. 2003-10-15. Archived from the original on 2012-10-26. Retrieved 2009-08-30.
  4. ↑ "About Us". Eureka Operations Pty Ltd. 2016. Archived from the original on 20 March 2012. Retrieved 2016-10-05.
  5. ↑ "Coles fuel offer extending after trial". B&T. 2003-10-30. Archived from the original on June 29, 2004. Retrieved 2009-08-30.
  6. ↑ "Coles runs short on petrol". Sydney Morning Herald. 2003-12-09. Retrieved 2009-08-30.
  7. ↑ Coles Express supports basketball across the country as new naming rights partner of NBL1 Coles Express 15 July 2021
  8. ↑ "Coles Myer adds to Kmart fuel load". The Australian. 2006-01-08. Archived from the original on 2012-10-26. Retrieved 2009-08-30.
  9. ↑ Mitchell, Sue; Macdonald-Smith, Angela (6 February 2019). "Coles signs new fuel deal with Viva, says convenience earnings will fall 62pc". Australian Financial Review.
  10. ↑ "Coles offloads 710 Coles Express petrol stations in $300 million sale". Nine.com.au. 21 September 2022. Retrieved 2022-09-21.
  11. ↑ Koehn, Emma (2022-09-21). "As Coles lets Express go, convenience stores are ripe for shake-up". Sydney Morning Herald. Retrieved 2022-09-21.
  12. ↑ "Coles to sell its fuel & convenience business to Viva Energy" (PDF). Australian Securities Exchange. Coles Group. 21 September 2022. Archived (PDF) from the original on 23 September 2022.
  13. ↑ Packham, Colin (2023-05-01). "Viva closes deal for Coles Express to accelerate convenience shift". Australian Financial Review. Retrieved 2023-05-01.
  14. ↑ Keane, Daniel (2023-04-05). "Servo chain OTR to be sold for $1.15 billion in move to 'replace' Coles Express across 700 sites". ABC News. Retrieved 2023-04-15.
  15. ↑ Petrol station shakeup: goodbye Coles Express, hello OTR Sydney Morning Herald 23 August 2023
  16. ↑ Jeffrey, Daniel (2023-09-27). "Coles Express stores to be replaced by new brand Reddy Express, owner announces". 9 News. Retrieved 2023-09-28.
  17. ↑ Brook, Benedict (2023-09-28). "Coles Express service stations to be rebranded after Viva Energy takeover". News.com.au. Retrieved 2023-09-28.
  18. ↑ "Coles Express Special Offers Save up to 6c a litre on Fuel". Eureka Operations Pty Ltd. 2009. Archived from the original on 2010-09-22. Retrieved 2009-08-30.
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