Australian retailer Coles Myer is set to unveil a plan to cut costs and improve its bottom line over the next few years.

The company is expected to announce a strategy aimed a saving at least A$1bn (US$0.68bn) in supply and distribution costs, reported Reuters.

Coles Myer has targeted net profit of $800m by the end of July 2006, a rise of around 76% compared to its fiscal 2003 net profit of $455m, which it reported last week.

The cost-savings plan is aimed at reducing the gap between Coles and Australia’s biggest supermarket retailer Woolworths, which is in the second stage of its plan to deliver cost savings of $6.9bn in the nine years to fiscal 2008. Woolworths’ plan has already delivered cost savings of $1.7bn in the four year to fiscal 2003.