John Durkan says Coles is not changing, despite Woolworths challenge

The Australian
February 3, 2017
JOHN DURIE
Senior writer/columnistMelbourne
@John_Durie

Coles boss John Durkan has declared “we are not changing” in the face of increased momentum from rival Woolworths.

He added: “Australian consumers have never had it any better.”

Mr Durkan was speaking after unveiling a series of management changes to boost the performance of the Wesfarmers-owned (WES) supermarket chain.

“Lower prices, better availability and better quality” were the Coles catch words, he told The Australian.

“We’re not changing — we are continuing to invest in our customers and in our service.”

Quarterly sales figures due later this month are expected to show Woolworths has beaten Coles for the first time in over seven years.

But Mr Durkan noted Woolworths (WOW) was comparing its performance against consecutive negative results while Coles’ second quarter last year, when it increased comparable store sales by 4.9 per cent, was one of its strongest in recent quarters.

Mr Durkan also played down analysts’ talk about increased inflation.

“Consumer confidence is not so great right now and it would be the wrong time to increase prices,” he said.

Coles management changes include the appointment of former Coles Express boss Simon McDowell as chief customer officer. Alister Jordan will take the Coles Express job along with his current roles running online sales and corporate affairs.

Mr Durkan has added two people to support Chris Nicholas as merchandising boss — George Dymond and Andy Coleman.

Former Victorian state boss Leah Weckert will be in charge of a new role at people and culture.

Mr Durkan said the changes underlined his commitment to improving the customer offer.