80c coffee from Coles

In Coles’ latest attempt to win customers hearts, they are experimenting with new convenience stores branded as “Big Yum at Little Coles.” There are currently three stores running in Melbourne that offer a range of snacks at affordable prices. They sell coffee for just 80c a cup which undercuts the popular $1 offering available at 7-Eleven stores.

The Australian reports that the stores aim to match the prices of convenience food offerings to supermarket ones. To compete with  7-Eleven’s slushies, Coles have introduced the Guzzle Bomb, The frozen drinks machine has graffiti-style instructions: “Grab a cup > Mix it up ? Booyah!”.

Retail expert Gary Mortimer believes that it’s going to be hard to achieve supermarket-level pricing. He told SmartCompany, “Running a supermarket and running a convenience store are very different, it’s hard to hold supermarket style prices due to the higher wages for convenience store workers.”

According to the report:

As part of the consumer shift to healthier meals, the rebranded Coles Express pilot stores, in the Victorian suburbs of Kew, South Yarra and Windsor, will have an extended range of healthier meal and snack options including bananas, wraps, handmade sandwiches, sushi, salads and ready-made meals from the new Coles Brand convenience range.

The new format stores also feature a pick and mix nut station and a wider range of bakery items, including doughnuts, muffins and croissants.