1.5 Trends of the total market The competition is high and the trend of industry is steady according to IBISWORLD. Over the next five years, it forecast to decline unemployment figures and remain higher than pre global crisis that affect customers purchase conditions for major household items, such as groceries. Improved low-cost private-label products have become increasingly attracting to customers especially low-income families. Consumers prefer lower priced and ‘on-special’ items, rather than higher price items. The private-label products will continue to grow and extend beyond staples like milk, flour and sugar. This will influence the industry demand over the next five years.

III. Financial and Corporate …show more content…
Wesfarmers restructured centralized Coles functions by reducing store employee numbers at Coles, changing new management teams and development of five year plans and budget. The repositioning efforts have added Coles future growth. Thus, Coles create more customer focused, value driven operation and improved business performance.
• Strong Market Position - Coles considered as one of the largest full line retailers in Australia. The company have more than 2,400 Supermarkets ,liquor and convenience stores in Australia and New Zealand. Coles have 450 Kmart, Target and Officeworks stores that sells apparel and general merchandise. Coles operates 750 stores across Australia with over 11 million transaction a week.
• Strong Brand Name - In the Australian retailing business Coles is recognized as a strong brand name. Their housebrand product offering have increased 14% of sales year on year. For several years Coles has been a leader of private brand it also operates stores under popular brand names like Target, Kmart and officeworks. Coles brand potential attract more customers therefore strengthening its bargaining …show more content…
According to Jon C, the retail Industry Executive named Jackie Healing who helped Coles brand standard for safety health, environment and farming welfare spoke on one of her gathering in Brisbane that supplier and customers relationships are the elements of Coles that made the company testify in Australia’s supermarket retail ranking. According to Jackie, customers have choices in terms of buying products and it started to a very fundamental level. When customers heard the word Coles it has an emotional impact to customers. Customers will make Coles their brand of choice when it comes to retailers. What Jackie wants is to make sure that customers have trust the Coles brand. Coles proposition is to deliver quality, trust and value to suppliers and customers. Statistics showed that Coles complaints from 17 complaints per million units sold over 40,000 food items. The company aimed to lower it to 10 complaints or less in order to maintain the customers trust and good