Australian conglomerate Wesfarmers has announced that its Coles supermarket business will be launching a new discount chain to replace its struggling Bi-Lo format.
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The new banner will offer low-cost products and a greater variety of own-label goods, the company indicated.
Coles MD Ian McLeod said the new concept would be tested in pilot stores before a national rollout.
When Wesfarmers acquired the Coles business last year, the Bi-Lo chain was converted to the Coles banner. However, this move alienated budget conscious consumers and led to a drop in full year profits.
Only about 70 Bi-Lo stores remain – about 130 have already been converted.
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