Coles takes on Kmart with homewares move
Exclusive: Coles is taking a direct shot at Kmart in a new move where it will bring back items it sold more than 100 years ago.
From today, customers will be offered a limited edition range of homewares.
The new Your Home collection features 101 homeware items that shoppers would probably associate with the likes of Ikea, Big W, Kmart, Target or even an ALDI's Special Buy.
The range includes cookware, decorator pieces, bathroom accessories, designer storage options, cushions and throw rugs in on-trend colours of grey, sage and coral.
Other items include lamps, vases and picture frames.
They are all priced from as low as $2 through to $30, and will be available through all Coles stores nationally, excluding Coles Express sites.
In a statement to News Corp, Coles Chief Executive for Commercial and Express, Greg Davis said the homewares range pays tribute to the company's origins 105 years ago as 'Coles GJ and Co: Fancy Goods and Drapers'.
The store was located in Melbourne's inner-city suburb of Collingwood.
"For more than a century Coles has been constantly evolving to meet customer needs, and we're committed to continuing that legacy of innovation," he said.
A Coles spokesman told News Corp the range will be on offer for a month, but could expand.
"If our customers tell us this is something that they love, we'll certainly look at offering something similar in the future. Watch this space," he said.
Retail Doctor Group CEO Brian Walker told News Corp that the move would be targeting Kmart, after Coles separated from Wesfarmers last year.
"Homewares is one of Kmart's strongest departments and they would have good intel on it, it's successful and profitable, and it would be a way to make it competitive," he said.
He said people "generally want a great deal and a bargain", and this offer from Coles "makes sense".
"They have always carried this very little basic homewares range of plates, crockery, and bits and pieces," he said.
"They're a retailers with a wide distribution network … they also look very carefully at ALDI's positioning.
"What we are seeing internationally too is the concept of supermarkets looking into cross merchandise categories."
Mr Walker said Coles will be "playing to increase gross profit" through the offer.
"Increasingly as customers are more time poor and homewares are a growing category, they can get these captive shoppers. You can have your cornflakes and a nice pink throw."
"The supermarkets are locked in a neck-and-neck war with massive price deflation … it's all about differentiating from their competitors and growing gross profit."
The Your Home Collection is in all Coles supermarkets until August 25 and includes:
• Succulent in Glass Pot - $5
• Decorative Ceramic and Wood Canister - $6
• Mahala Jar (ceramic pot with lid and leather handle) - $6
• Felt Storage Box - $10
• Velvet Cushion - $13
• Timber Photo Frame - $15
• Plush Throw - $15
• Four Draw Timber Storage Box - $12
• Maya Table Top Lamp - $25
• Round Wall Shelf - $25