BI-LO (Australia) - Coles Conversion

Coles Conversion

In 2006, Coles Group announced its plan to re-brand all Coles Group businesses (excluding Target and Officeworks) under the Coles name. BI-LO supermarkets were to be converted to Coles supermarkets, with others changing to other Coles Group businesses. Coles planned to keep many BI-LO lines in its converted stores, with Coles various home brands replacing some but not all of the BI-LO brand lines.

However, Coles Group announced in March 2007 it was "pausing" the conversion of BI-LO stores to Coles, following the poor results of the 129 stores converted thus far. Market analysts commented that the conversion program was unsuccessful due to Coles' transforming of stores in affluent areas first, the replacement of BI-LO's budget items with more expensive equivalents, and the removal of trademark budget meat packs.

Reflecting on the failed conversion strategy later in 2007, Coles chief operating officer Mick McMahon stated "a strategy you can't execute is probably not the right strategy".