Australia’s giant food and clothing retailer Coles Myer unveiled an extensive business plan this week that it hopes will improve profitability.
The highest profile decision has been to dump its shareholder discount card, which gives over half a million small shareholders money off purchases at the group’s range of stores (including Coles supermarkets and Kmart).
Scraping the popular discount card has caused a storm of protest from consumer groups but Coles Myer insists that the scheme is no longer profitable and must go.
John Fletcher, the company’s new CEO, initiated the business review. Fletcher claims that the raft of changes he is proposing will double profits to A$800m (US$400m) a year by 2006.
Analysts believe that the strategy’s main focus is to improve operations after years of poor management at the company, which has a target of reaching $38bn in sales a year by 2006.
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