BI-LO (Australia)
Encyclopedia
BI-LO is an Australia
n supermarket chain owned by Wesfarmers
(formerly Coles Group
). Once a chain of 180 outlets, most BI-LO supermarkets were re-branded as Coles Supermarkets
during 2006 and 2007. In October 2008, Coles stated it was looking to create a new chain to replace the remaining BI-LO stores. By December 2010, 48 stores remained open.
during the late 1970s. The first stores opened at Stirling
and Aldgate
in South Australia's Adelaide Hills region after being converted from hardware outlets, followed by the acquisition of a third store at Murray Bridge. Coles Myer cited that by 1979, BI-LO was South Australia's cheapest grocer.
By 1987, BI-LO was operating 28 supermarkets in South Australia and generating one third of metropolitan Adelaide’s supermarket sales, when it was acquired by Coles Myer, which also purchased the 34-store Shoeys discount supermarket chain in New South Wales (subsequently re-named as BI-LO). BI-LO would later expand into Queensland and Victoria.
In December 1994, BI-LO opened its first Mega Frrresh store at Greenacres, SA, in response to its then chief competitor Franklins
"Big Fresh" concept. In 1996, BI-LO acquired six Newmart supermarkets in Western Australia although the Newmart name was retained due to its strong brand identification. In 1998, BI-LO purchased three Northern Territory supermarkets in Darwin and Alice Springs. In 1999, the slogan "Extra Value For You" was launched.
BI-LO/Newmart opened nine new stores and completed 23 refurbishments in 2000, and opened 26 more stores and completed 11 refurbishments in 2001. The last Newmart stores in Western Australia to open before the chain was absorbed into Coles Supermarkets were at Garden City, Booragoon
(October 2000) and Ocean Keys
, Clarkson
(July 2001). The Garden City store became an Action Supermarket
, then later became a Woolworths Supermarket
. The Ocean Keys store became a Coles Supermarket
.
In 2002, BI-LO acquired and converted 15 Franklins sites, in New South Wales (Warilla Grove, Campbelltown - now Coles, Hillsdale - closed 2003, Mount Druitt - closed 2005, Shellharbour, Lavington, Thirroul), Queensland (Kawana, Capalaba - Closed 2007 reopened as Coles 2008, Hope Island, Loganholme), Victoria (Southland, Waverley Gardens - closed 2004, Lalor, Broadmeadows) and South Australia (Unley - closed 2005). Around 820 former Franklins employees were offered positions at BI-LO. BI-LO also opened 7 stores and a Bi-Lo Discount Petrol site at Narrandera, New South Wales
. In August of that year, all Newmart Supermarkets operated by BI-LO in Western Australia were transferred to the management of Coles Supermarkets. In 2004, BI-LO relaunched with the slogan "Why Pay More".
In July 2006 Coles Myer CEO John Fletcher
announced a strategy to progressively rebrand BI-LO, Kmart, First Choice Liquor, Liquorland and Theo's under the Coles banner. Re-branding BI-LO stores began later in 2006 and had been expected to be completed by mid 2007. A small number of stores were to be re-branded Coles Discount Grocery where a Coles Supermarket already exists in the same complex (for example, at Westfield Fountain Gate
. Some stores, such as BI-LO Arkaba in South Australia, were originally Coles Supermarkets before being converted to BI-LO in the late 1990s.
Coles Group announced in March 2007 it was "pausing" the conversion of BI-LO stores to Coles, following the poor results of the 129 stores converted thus far.
In October 2008, Coles stated it was planning to create a discount supermarket chain to replace the remaining BI-LO stores. In 2009, Coles stated it would sell eight of the remaining BI-LO stores to rival chain Foodworks.
A few BI-LO stores have recently been closed, or are closing soon, due to poor performance and small store size, these stores include Armidale and Merimbula.
At its peak BI-LO had more than 180 stores and employed 13,600 people. By March 2009, only 48 stores remained, largely in NSW and Queensland.
In 2006, Coles Group announced its plan to re-brand all Coles Group
businesses (excluding Target
and Officeworks
) under the Coles name. BI-LO stores were to be converted to Coles Supermarkets, with others changing to other Coles Group businesses or closing. Coles planned to keep many BI-LO lines in its converted stores, with Coles various home brands replacing some but not all of the BI-LO brand lines. As of July 2010, all BI-LO private label products were replaced with Coles various home brands.
However, Coles Group announced in March 2007 it was "pausing" the conversion of BI-LO stores to Coles, following the poor results of the 129 stores converted thus far. Market analysts commented that the conversion program was unsuccessful due to Coles' transforming of stores in affluent areas first, the replacement of BI-LO's budget items with more expensive equivalents, and the removal of trademark budget meat packs.
Reflecting on the failed conversion strategy later in 2007, Coles chief operating officer Mick McMahon stated "a strategy you can't execute is probably not the right strategy".
was the face of BI-LO and Newmart supermarkets across Australia, with BI-LO sponsoring and supplying his cooking shows. In late 2005, a stylised BI-LO docket was adopted as BI-LO's mascot and its use replaced Hewitson. At this time, the tag-line "It's the total of the docket that counts!" was used. In 2003, a campaign recording customer answers to "Why do you shop at BI-LO?" was used. In 2007 amid the Coles conversion, an election-style campaign also featured the stylised BI-LO Docket with the tag "Reduce the total of your docket!" Former slogans included "We Do, You Do" and "Cheap Groceries".
launching "Franklins Big Fresh" in the early 1990s, BI-LO launched its Mega Frrresh brand at Greenacres, South Australia
in 1994. Like Franklins Big Fresh, it combined discount shopping with a market-style atmosphere. Mega Frrresh stores remain in New South Wales and Queensland.
with a similar format to BI-LO: discount groceries, bulk foods, extensive fresh produce, meat and delicatessen sections. BI-LO was unable to re-brand the stores since Foodland
traded stores in Western Australia under the BI-LO name at the time. The Newmart chain grew to 18 stores by 2002, had its own website until 2006, and like BI-LO, launched the slogan "Extra Value for You" in 1999.
In 2002, Coles assumed management of Newmart, immediately re-branding seven stores as Coles supermarkets, before discontinuing the Newmart brand in 2003, selling four stores to Foodland
(which re-branded as Action Supermarkets
), and renaming the remaining stores Coles Supermarkets.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n supermarket chain owned by Wesfarmers
Wesfarmers
Wesfarmers Limited is one of Australia’s largest public companies and one of Australia's largest retailers. Its headquarters are in Perth, Western Australia....
(formerly Coles Group
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...
). Once a chain of 180 outlets, most BI-LO supermarkets were re-branded as Coles Supermarkets
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...
during 2006 and 2007. In October 2008, Coles stated it was looking to create a new chain to replace the remaining BI-LO stores. By December 2010, 48 stores remained open.
History
BI-LO was established by John and David Weeks in AdelaideAdelaide
Adelaide is the capital city of South Australia and the fifth-largest city in Australia. Adelaide has an estimated population of more than 1.2 million...
during the late 1970s. The first stores opened at Stirling
Stirling, South Australia
Stirling is a town located in the Adelaide Hills. It is administered by the Adelaide Hills Council. Its population is about 2500, though the town has largely merged with neighbouring townships such as Crafers and Aldgate. The towns closely surrounding it are: Aldgate, Crafers, Bridgewater and...
and Aldgate
Aldgate, South Australia
Aldgate is a South Australian town located 21 kilometres south-east of Adelaide, in the Adelaide Hills.The town of Aldgate was supposedly named in 1882 after the local hotel the Aldgate Pump, which was named by Richard D. Hawkins, who had additionally opened the nearby Crafers Inn...
in South Australia's Adelaide Hills region after being converted from hardware outlets, followed by the acquisition of a third store at Murray Bridge. Coles Myer cited that by 1979, BI-LO was South Australia's cheapest grocer.
In December 1994, BI-LO opened its first Mega Frrresh store at Greenacres, SA, in response to its then chief competitor Franklins
Franklins
Franklins is a discount supermarket chain selling packaged groceries and perishables throughout New South Wales, Australia. It owns the No Frills brand of generic products, promoted by their mascot, "Red Sock". It is known as "Australia's Original Discount Grocer"...
"Big Fresh" concept. In 1996, BI-LO acquired six Newmart supermarkets in Western Australia although the Newmart name was retained due to its strong brand identification. In 1998, BI-LO purchased three Northern Territory supermarkets in Darwin and Alice Springs. In 1999, the slogan "Extra Value For You" was launched.
BI-LO/Newmart opened nine new stores and completed 23 refurbishments in 2000, and opened 26 more stores and completed 11 refurbishments in 2001. The last Newmart stores in Western Australia to open before the chain was absorbed into Coles Supermarkets were at Garden City, Booragoon
Booragoon, Western Australia
Booragoon is a suburb of Perth, Western Australia located within the City of Melville.Booragoon is the aboriginal name for the lower reaches of the Canning River....
(October 2000) and Ocean Keys
Ocean Keys
Ocean Keys Shopping Centre is a major shopping centre, located in Clarkson, a suburb of Perth, Western Australia.-Major retailers:*Coles*Woolworths*Kmart* Kmart Tyre & Auto* The Good Guys* Cotton On* EB Games* Red Dot Stores* Specsavers...
, Clarkson
Clarkson, Western Australia
Clarkson is an outer northern suburb of Perth, Western Australia, located 34 kilometres north of Perth's central business district. It is part of the City of Wanneroo local government area. While mostly a residential area, it also functions as a town centre, serving many surrounding areas with a...
(July 2001). The Garden City store became an Action Supermarket
Action Supermarkets
Action is a defunct Australian supermarket chain. Based in Perth, Western Australia, Action had 80 supermarkets across Western Australia, Queensland and New South Wales, and was one of the largest supermarket chains in Australia...
, then later became a Woolworths Supermarket
Woolworths (supermarkets)
Woolworths is the largest supermarket chain in Australia, owned by Woolworths Limited.-History:Woolworths Limited was founded in 1924, with the first store opening up in Sydney's Imperial Arcade.-2008 rebranding:...
. The Ocean Keys store became a Coles Supermarket
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...
.
In 2002, BI-LO acquired and converted 15 Franklins sites, in New South Wales (Warilla Grove, Campbelltown - now Coles, Hillsdale - closed 2003, Mount Druitt - closed 2005, Shellharbour, Lavington, Thirroul), Queensland (Kawana, Capalaba - Closed 2007 reopened as Coles 2008, Hope Island, Loganholme), Victoria (Southland, Waverley Gardens - closed 2004, Lalor, Broadmeadows) and South Australia (Unley - closed 2005). Around 820 former Franklins employees were offered positions at BI-LO. BI-LO also opened 7 stores and a Bi-Lo Discount Petrol site at Narrandera, New South Wales
Narrandera, New South Wales
-Transport:Narrandera is well served for transport. The Sturt Highway and the Newell Highways cross, just south of Narrandera. Greyhound buses pass daily - note that the destination can be listed as Jillenbah....
. In August of that year, all Newmart Supermarkets operated by BI-LO in Western Australia were transferred to the management of Coles Supermarkets. In 2004, BI-LO relaunched with the slogan "Why Pay More".
John Fletcher (businessman)
John Fletcher is a former CEO of Coles Myer, the biggest retailer in Australia.Prior to Coles Myer, Fletcher was CEO of Brambles Industries, after a long career with them spanning 19 years, initially in an accounting role, and later in general management...
announced a strategy to progressively rebrand BI-LO, Kmart, First Choice Liquor, Liquorland and Theo's under the Coles banner. Re-branding BI-LO stores began later in 2006 and had been expected to be completed by mid 2007. A small number of stores were to be re-branded Coles Discount Grocery where a Coles Supermarket already exists in the same complex (for example, at Westfield Fountain Gate
Westfield Fountain Gate
Westfield Fountain Gate is a super regional shopping centre located in Narre Warren in the outer south-eastern suburbs of Melbourne, Australia...
. Some stores, such as BI-LO Arkaba in South Australia, were originally Coles Supermarkets before being converted to BI-LO in the late 1990s.
Coles Group announced in March 2007 it was "pausing" the conversion of BI-LO stores to Coles, following the poor results of the 129 stores converted thus far.
In October 2008, Coles stated it was planning to create a discount supermarket chain to replace the remaining BI-LO stores. In 2009, Coles stated it would sell eight of the remaining BI-LO stores to rival chain Foodworks.
A few BI-LO stores have recently been closed, or are closing soon, due to poor performance and small store size, these stores include Armidale and Merimbula.
At its peak BI-LO had more than 180 stores and employed 13,600 people. By March 2009, only 48 stores remained, largely in NSW and Queensland.
Coles Conversion
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...
businesses (excluding Target
Target (Australia)
Target Australia Pty Ltd is an Australian department store chain owned by Wesfarmers . It operates 172 Target stores and 119 Target Country stores making 291 combined stores with its head office located in North Geelong, Victoria. It sells clothing, cosmetics, toys, homewares, electrical and...
and Officeworks
Officeworks
Officeworks is a chain of Australian office supplies stores which was established in the early 1990s by Coles Myer...
) under the Coles name. BI-LO stores were to be converted to Coles Supermarkets, with others changing to other Coles Group businesses or closing. Coles planned to keep many BI-LO lines in its converted stores, with Coles various home brands replacing some but not all of the BI-LO brand lines. As of July 2010, all BI-LO private label products were replaced with Coles various home brands.
However, Coles Group announced in March 2007 it was "pausing" the conversion of BI-LO stores to Coles, following the poor results of the 129 stores converted thus far. Market analysts commented that the conversion program was unsuccessful due to Coles' transforming of stores in affluent areas first, the replacement of BI-LO's budget items with more expensive equivalents, and the removal of trademark budget meat packs.
Reflecting on the failed conversion strategy later in 2007, Coles chief operating officer Mick McMahon stated "a strategy you can't execute is probably not the right strategy".
Advertising
The tag-line "Extra Value for You — and Me" was used between 1999 and 2004, which was replaced by "Why Pay More!" Between 2000 and 2005, TV cook Iain HewitsonIain Hewitson
Iain Hewitson , self styled as "Huey", is a New Zealand-born chef who moved to Australia in 1972. He has a history as restaurateur in Melbourne, but is best known for his television involvement with Network Ten.-TV career:...
was the face of BI-LO and Newmart supermarkets across Australia, with BI-LO sponsoring and supplying his cooking shows. In late 2005, a stylised BI-LO docket was adopted as BI-LO's mascot and its use replaced Hewitson. At this time, the tag-line "It's the total of the docket that counts!" was used. In 2003, a campaign recording customer answers to "Why do you shop at BI-LO?" was used. In 2007 amid the Coles conversion, an election-style campaign also featured the stylised BI-LO Docket with the tag "Reduce the total of your docket!" Former slogans included "We Do, You Do" and "Cheap Groceries".
BI-LO Mega Frrresh
In response to its main competitor FranklinsFranklins
Franklins is a discount supermarket chain selling packaged groceries and perishables throughout New South Wales, Australia. It owns the No Frills brand of generic products, promoted by their mascot, "Red Sock". It is known as "Australia's Original Discount Grocer"...
launching "Franklins Big Fresh" in the early 1990s, BI-LO launched its Mega Frrresh brand at Greenacres, South Australia
Greenacres, South Australia
Greenacres is a north eastern suburb of Adelaide, South Australia in the City of Port Adelaide Enfield. Considered as one of the inner suburbs of Greater Adelaide, Hampstead Road and Mullers Road, intersect at Greenacres, making it a bustling area during rush hour...
in 1994. Like Franklins Big Fresh, it combined discount shopping with a market-style atmosphere. Mega Frrresh stores remain in New South Wales and Queensland.
Newmart
BI-LO purchased six Newmart supermarkets in 1996 for A$16 million. Newmart was a small independent discount chain in Perth, Western AustraliaPerth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
with a similar format to BI-LO: discount groceries, bulk foods, extensive fresh produce, meat and delicatessen sections. BI-LO was unable to re-brand the stores since Foodland
Foodland (South Australia)
Foodland is an Australian supermarket brand with over one hundred and twenty locations, primarily in South Australia and the Northern Territory. Most Foodland stores are supplied by IGA. These supermarkets are generally larger than IGA-branded ones...
traded stores in Western Australia under the BI-LO name at the time. The Newmart chain grew to 18 stores by 2002, had its own website until 2006, and like BI-LO, launched the slogan "Extra Value for You" in 1999.
In 2002, Coles assumed management of Newmart, immediately re-branding seven stores as Coles supermarkets, before discontinuing the Newmart brand in 2003, selling four stores to Foodland
Foodland (South Australia)
Foodland is an Australian supermarket brand with over one hundred and twenty locations, primarily in South Australia and the Northern Territory. Most Foodland stores are supplied by IGA. These supermarkets are generally larger than IGA-branded ones...
(which re-branded as Action Supermarkets
Action Supermarkets
Action is a defunct Australian supermarket chain. Based in Perth, Western Australia, Action had 80 supermarkets across Western Australia, Queensland and New South Wales, and was one of the largest supermarket chains in Australia...
), and renaming the remaining stores Coles Supermarkets.
Main Competitors
- AldiALDIALDI Einkauf GmbH & Co. oHG, doing business as ', short for "Albrecht Discount", is a discount supermarket chain based in Germany...
- FranklinsFranklinsFranklins is a discount supermarket chain selling packaged groceries and perishables throughout New South Wales, Australia. It owns the No Frills brand of generic products, promoted by their mascot, "Red Sock". It is known as "Australia's Original Discount Grocer"...
(New South Wales) - IGA Australia
- Woolworths (supermarket)
Former competitors
- ActionAction SupermarketsAction is a defunct Australian supermarket chain. Based in Perth, Western Australia, Action had 80 supermarkets across Western Australia, Queensland and New South Wales, and was one of the largest supermarket chains in Australia...
(Queensland, New South Wales and Western Australia) - Jewel Food StoresJewel Food Stores (Australia)Jewel Food Stores was a discount supermarket chain in Australia that is now defunct. The chain was originally owned and operated by the Fleming family. They are not related to the American supermarket chain "Jewel" now owned by Supervalu....