Coles invests for the future
Coles is spending big to improve the business for the future - see how it could help you
What's the key learning?
- Research shows that companies that prioritise long-term results generally perform better
- However, CEOs often struggle to prioritise long-term goals due to constant pressure from the Board of Directors and shareholders
- Coles believes that investing in automation and technology will be profitable in the long-term
- People are more likely to spend if they are in-store AND online shoppers
WHY WOULD COLES SPEND SO MUCH IN THEIR FUTURE?
Coles will spend $2.5 billion over the next 2 years to create a better online and in-store shopping experience for customers.
Coles is making big investments to help you avoid small-talk at the cash register:
- They're rolling out conveyor-belt-self-service checkouts to speed up checkouts (Which means: Coles Radio won't be stuck in your head for one minute longer than it needs to be. Yay)
- They're enabling phone scanning of items rather than full-blown check outs - so you can scan more onions as avocados
- They're introducing automated warehouses and fulfilment centres - so there isn't another rush on toilet paper
So, what's the key learning?
Companies create the most value when they prioritise long-term results over short-term targets.
However, CEOs can find it hard to focus on the future when they face pressure from investors to deliver strong short-term results.
Coles reckons that investments in tech, data, online and automation today will eventually lead to sales and profits over the long term.
Coles has done its research and found that people who shop both online and in-store spend twice as much with them.