{"id":109463,"date":"2026-02-28T23:31:00","date_gmt":"2026-02-28T12:31:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=109463"},"modified":"2026-02-28T00:08:44","modified_gmt":"2026-02-27T13:08:44","slug":"coles-big-ai-move","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/coles-big-ai-move\/","title":{"rendered":"Coles&#8217; Big AI Move: What It Means for Your Next Grocery Shop!"},"content":{"rendered":"\n<p>Coles is taking its sales game to the next level with the help of artificial intelligence (AI). The supermarket giant announced that it will use AI to better target sales to specific customer groups, as it works to bounce back from an 11.3% drop in profits for the second half of 2025. The company is focusing on larger, more impactful promotions to cater to customer needs, hoping to rebuild trust after the consumer watchdog launched a lawsuit over its controversial &#8220;Down Down&#8221; sales prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">AI in Retail: A Smart Shift for Coles<\/h2>\n\n\n\n<p>In an effort to adapt to the increasingly competitive retail market, Coles is shifting gears by leveraging AI in a more strategic way. According to chief commercial officer Anna Croft, AI will help the company identify the best promotions to meet specific customer needs. By using data-driven insights, Coles plans to target its sales to key demographics, providing better value and convenience for shoppers. &#8220;<em>We\u2019re just really focused on actually using data and AI on \u2018how do we get the right promotions to meet the right customer cohorts<\/em>,&#8221; Croft said, reports <a href=\"https:\/\/au.finance.yahoo.com\/news\/supermarket-giant-announces-huge-profit-220137227.html\" target=\"_blank\" rel=\"noopener\">Yahoo Finance<\/a>.<\/p>\n\n\n\n<p>While the supermarket has used AI in various forms before, this new approach signals a significant move towards more tailored sales strategies. It\u2019s not just about offering deals; it\u2019s about offering the right deals for the right shoppers. In an era where personalization is key, Coles hopes this move will drive customer loyalty and boost sales in the long run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Legal Issues and Trust in Coles<\/h2>\n\n\n\n<p>Despite the positive talk about AI, Coles is still grappling with the fallout from the ongoing lawsuit over its \u201cDown Down\u201d prices. The Australian Competition and Consumer Commission <a href=\"https:\/\/www.accc.gov.au\/\" target=\"_blank\" rel=\"noopener\">(ACCC)<\/a> has accused the supermarket of misleading customers about the authenticity of its discounts, calling them &#8220;illusory.&#8221; These accusations have hurt the company\u2019s reputation, and Coles is under pressure to restore its credibility.<\/p>\n\n\n\n<p>Croft emphasized that rebuilding consumer trust would be key to Coles\u2019 recovery. While the company did not comment on the outcome of the lawsuit, Croft hinted that Coles is committed to working through the issues and ensuring transparency in future campaigns. She also mentioned that the retailer would be shifting toward &#8220;everyday low prices&#8221; for some product categories and doing fewer, but more substantial, promotions.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Federal Court Judge questions the establishment of ACCC\u2019s key points in Coles court case<a href=\"https:\/\/t.co\/f2Ao9M3IVc\">https:\/\/t.co\/f2Ao9M3IVc<\/a><\/p>&mdash; AJH Lawyers (@AJHLawyers) <a href=\"https:\/\/twitter.com\/AJHLawyers\/status\/2027152235873091604?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">February 26, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Profits Drop, But Coles Holds Steady<\/h2>\n\n\n\n<p>While <a href=\"https:\/\/en.econostrum.info\/au\/are-coles-down-down-prices-really\/\" target=\"_blank\" rel=\"noopener\">Coles<\/a> reported an 11.3% drop in profits, it still posted a solid $511 million profit for the second half of 2025. The company\u2019s supermarket business saw an increase in gross margins, from 27.1% to 27.8%. However, Coles has also been hit with an additional $165 million to cover penalties for underpaying staff\u2014an issue shared with rival Woolworths. Despite these setbacks, Coles CEO Leah Weckert remains optimistic about the company\u2019s ability to compete in the highly competitive grocery sector.<\/p>\n\n\n\n<p>For now, Coles is focusing on fine-tuning its approach with AI and ensuring it delivers value in a more personalized way for shoppers. While it\u2019s facing some major challenges\u2014especially regarding consumer trust\u2014the retailer is hoping these strategic changes will turn things around. The coming months will reveal if AI can truly transform the shopping experience and help Coles recover from a tough period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coles announces a big shift in its sales strategy using AI to target customers. What\u2019s next for the supermarket giant after a tough profit drop?<\/p>\n","protected":false},"author":14,"featured_media":108144,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-109463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=109463"}],"version-history":[{"count":1,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109463\/revisions"}],"predecessor-version":[{"id":109464,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/109463\/revisions\/109464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/108144"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=109463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=109463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=109463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}