Coles Group Ltd. · ASX:COL
Coles — Investor Presentation (November 2002)
21 slides from Coles's investor presentation, Nov 8, 2002
Slide 1: Target & Kmart Tour
Target & Kmart Tour 8 November 2002
Slide 2: Slide 2
Slide 3: Clear strategy
Clear strategy ! On-trend, high quality, very affordable prices ! Low cost, differentiated DDS ! Focus on apparel & soft homewares ! Leveraging Target brand
Slide 4: Marketing effort
Marketing effort ! Image - 100% happy reinforces Target brand positioning ! High velocity full price sales = on-trend, clean stock ! Promotional calendar ➤Item & price emphasis ➤Sub-category % off ➤Reduced store-wide % off
Slide 5: Key achievements
Key achievements ! Significant earnings improvement in FY02 ! Apparel & footwear - key performers ! Improved store environment & execution ! Better stock management ➤Higher stock turns ➤Improved merchandise flow ! Margin expansion ➤Disciplined stock control ➤Cost focus
Slide 6: Cutting the cost of living.
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Slide 7: Progress against strategy
Progress against strategy Objectives ! Reposition brand ! Develop a new financial model ! Build team & succession planning ! Develop a customer focused culture
Slide 8: Kmart's competitive position
Kmart’s competitive position ! No.1 discount dept store choice for families ! Best range at lowest price in every market served ! 100% price competitive ! Combination of weekly promotions focused on item & price, & everyday low pricing on basic items ! Lowest price guarantee
Slide 9: The 6 rocks
The 6 rocks ! Lowest cost ! Lowest price ! In-stock, on-show ! Wanted ranges ! Efficient service ! Best people
Slide 10: Customer deliverables
Customer deliverables ! Great prices ! Wanted ranges / in-stock ! Seasonal / event dominance ! New & exciting products ! Fast checkouts
Slide 11: Kmart wheel: lower expenses, lowest prices
Lower Expenses Kmart Higher Lowest Profits Productivity Prices Wheel Higher Sales Moving from high margin & high cost model, to low margin & low cost model
Slide 12: New store fit-out costs
New store fit-out costs m2 $600 570 ! Fit out costs were significantly higher $550 than both Big W & Target $500 485 456 ! Savings of $0.5m - $450 $1.0m per store in capex $400 1996- Today Future 2001
Slide 13: Previous high cost model
Previous high cost model ! High fixturing, narrow aisles ! Cosmetics dept blocking customer views ! Wooden flooring in some depts ! Fixtures designed for range vs volume ! Minimal price ticketing on ends ! High dept divider walls - shop within shops ! Angled apparel blocks & fixtures ! Expensive opt
Slide 14: Low cost model - new stores
Low cost model - new stores Features ! Item & price promotional ! Consumables expanded displays ! Better utilization of space ! Simple fixtures / fittings ! Clear price signage - low price ambience ! Clear directional signage ! Lower fixturing ! Reduced store labour costs ! Wide & straight aisles !
Slide 15: Improvements & refinements - future
Improvements & refinements - future ! Further reduce fit out costs ! Reduce stockroom size ! Maximise selling space ! Drive higher stock turns & returns per m2 ! Growth categories expanded ! Poor performing categories reduced ! Promote cash & carry format
Slide 16: Low cost model - refurbishments
Low cost model - refurbishments Refurbish all stores over the next 4 years based on Eastland prototype focus: ! Consumables range expansion ! Wider & straighter aisles ! Clearer price signage ! New department signage ! Lower fixtures ! Improved stock holding capacity ! Better utilized space
Slide 17: The future
The future ! Growing sales volume ! Lowering cost of doing business ! Improve customer satisfaction: easier, enjoyable self-serve experience ! Increase market share ! 5-10 new stores a year ! Expand Automotive business ! New marketing campaign to communicate the new positioning
Slide 18: Event dominance
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Slide 19: Consumables
Consumables
Slide 20: Wide aisles
Wide aisles — tsti-lia Cutting the cost of living.
Slide 21: Clear price ticketing
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