According to local press reports, the Australian retail combine Coles Myer Ltd. is considering scrapping its budget supermarket brand Bi-Lo and integrating the Bi-Lo stores with its core Coles supermarkets operation.

Merging the Bi-Lo branded stores, which have an annual turnover of around A$3bn,  with the Coles operation would allow Coles to reclaim the number one position in the supermarket retail rankings from Woolworths.

Coles Myer was also reported to be considering merging the back-office and buying functions of Coles with those of its Kmart division, as part of its strategic plan for the next five years.