Retailer Coles Myer is due to reveal its eagerly awaited new five-year strategy on Monday (31 July) and, analysts suggest, it will likely include rebranding of Bo-Lo, restructuring measures and the introduction of new retail formats.
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Coles Myer CEO John Fletcher announced the strategy briefing in March, at the same time as the company disposed of the Myer department store chain for AUS$1.4bn. A new corporate name is expected to be announced following the sale.
Analysts have predicted that the company is likely to phase out its no-frills supermarket Bi-Lo, expand Target and possibly move towards a supercentre format with food and non-food offerings.
In an investor note, Citigroup said that it expects that the changes will be “radical” in nature, but warned that they are not likely to give an immediate boost to financial results.
“Our overall view is that most of the initiatives will not impact earnings until financial year 2008 at the earliest,” the broker said.
Job cuts and restructuring of the supply chain have also been predicted.
