Announcing the Q3 2020 results, CEO Steven Cain revealed hiring Walmart exec to lead Coles’ eCommerce business. Coles revenue increased by 12.9% YoY, marked by unprecedented demand amid the COVID-19 pandemic.
New reality
As the COVID-19 pandemic rages causing havoc across the world hurting retail, enterprises are ramping up to face the inevitable digitisation of business.
The pandemic restrictions have impacted the way business is done across the world. Virtual teams and cancelled shows and trade conferences are the new normal. For retailers, eCommerce and bridging the click & brick gap are inevitable.
In the last few months, leading retailers Coles and Woolworths have struggled to fill online orders.
Coles had to temporarily suspend Home Delivery and Click & Collect in March prior to the launch of Coles Online Priority Service (COPS). Coles has to ramp up online capacity to meet growing demand in the new world.
Competitor Woolworths meanwhile doubled down on its digital strategy. Woolworths’ digital traffic more than doubled to 38 million visits while active app usage increased to 1.2 million users.
Amazon announced the launch of Just Walk Out technology for retailers in March. The system allows shoppers to pick and go, offering a “frictionless experience”.
In an unrelated development, Kmart group announced recruiting Amazon exec to lead its digital marketplace Catch.
Wesfarmers, till recently owning Coles, made the announcement committing more investments into digital capabilities.
Walmart to Coles
The Ben Hassing appointment is indicative of the importance of digital strategy and eCommerce business to Coles group. Mr Hassing will start as Chief Executive of Coles eCommerce this month.
The new executive position reports directly to the Coles Group Chief Executive Steven Cain.
Having spent his time for over 15 years at Walmart and also with leading Chinese startups, Mr Hassing is no stranger to leveraging startups’ capabilities for a large retailer. Expect similar action in Australia as well.
Although not known for its digital prowess like its competitor Amazon, Walmart has achieved steady progress in establishing a digital business. The retail giant acquired Indian eCommerce startup Flipkart for about $16bn taking a big share of the growing eCommerce market in India. Walmart also has made massive progress in building its own advertising business. Amazon has a growing advertising business, so do leading North American retailers Kroger and Target.
With his experience at Walmart and building a digital strategy working with startups, the new boss of Coles eCommerce may as well write a new and exciting chapter in the digital growth of Coles group.
