Australian supermarket operator Coles Myer has forecast a sharp rise in sales as it launched its discount fuel alliance with the Australian unit of Royal Dutch/Shell Group.

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Coles Myer is hoping the move will help in win back market share from rival Woolworths, which has been offering discounted fuel for several years.

Coles Myer is offering a 4 cents per litre discount on fuel for customers who spend more than A$30 (US$19.9) at the company’s supermarkets or liquor stores, a similar offer to Woolworths’ current fuel discount scheme.

More than 80% of Coles supermarkets are located within five kilometres of an alliance fuel outlet, but this rises to 90% in Australia’s main cities.

Coles Myer expects the fuel programme to contribute more than A$3bn in annual sales and expects the sales growth to happen fairly fast, reported Dow Jones International News.

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