‘Exciting next step’: Big change to Coles Express sites
Supermarket giant Coles has announced a new development involving its 710 Coles Express sites across Australia.
Coles is selling its 710 Coles Express sites to petrol and diesel supplier Viva Energy for $300m.
The deal announced on Tuesday will allow Coles to focus on its core supermarket and liquor business while accelerating Viva’s strategy to become a fully integrated fuel and convenience retailer.
The sites will be rebranded; however, Coles customers will still be able to access loyalty benefits, including the 4c per litre fuel discount offer and earning and redeeming Flybuys points.
Coles chief executive Steven Cain said Viva, which supplies Coles with fuel, was “well-placed to make the most of the opportunities to grow the Express business into the future”.
He said the supermarket chain would “strengthen our focus on our omnichannel supermarket and liquor businesses and our ambition of becoming Australia’s most sustainable supermarket group”.
Viva chief executive Scott Wyatt labelled the new contract “an exciting next step for our business and our relationship” in a statement on Wednesday.
It will make Viva Australia’s largest fuel and convenience network under a single retail operator.
“The acquisition means we will be able to accelerate our plans to grow the integrated fuel and convenience business while our customers continue to enjoy the excellent customer service provided by the dedicated Express team, the extensive product range in-store and the loyalty programs we know they love,” Mr Wyatt said.
Coles Express outlets employ around 6000 staff.
Viva reported the net impact of the acquisition to be $143m after considering working capital and existing fuel stock.