Coles is stopping weekly distribution of seven million printed specials catalogues, a key feature shopping in Australia for decades, as the supermarket chain switches to purely digital communication.
The groceries retailer is launching coles&co, a digital way to access specials, new products, tips and recipes. The printed monthly Coles magazine is staying.
For Ive Group, which prints the catalogues, the move will see annual revenue cut by $35 million to $40 million. On the ASX, Ive shares fell 11% to $0.71.
The move has been accelerated by COVID-19 and changes in the way consumers shop. Since March, readership fo the Coles digital catalogue has increased by 50%.
COVID-19 has seen a major shift to online shopping, delivery and click and collect in the last few months.
Coles CMO Lisa Ronson says customers are looking for a deeper level of information and tthey want it more personalised to them.
"So they're searching for what is meaningful to them, to them as individuals, rather than a one size for everyone approach," she trold AdNews.
"We feel that this is just a better way to inspire and inform Australians of what we've got in store, our specials, our value, and inspiration from some of our great cooks and chefs.
"We'll still print the (monthly) Coles magazine. The research that is opposite of the catalogue. A lot of customers are seeking food inspiration.
"We're constantly looking at all of our modes of communication with our customers and try and optimise as much as we possibly can.
"And we're just finding that customers are looking for a deeper level of information and COVID has accelerated that."
Printed catalogues will stop being delivered from September 9.
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