Britain's Sainsbury's In Wholesale Deal With Australia's Coles
British supermarket group Sainsbury's has struck a deal to sell packaged groceries and household products in Australia as it seeks to grow its wholesale business, it said on Monday.
Sainsbury's said it has agreed a wholesale partnership with Australian retailer Coles.
The UK firm's biggest wholesale deal yet will see it supply own brand products to Coles supermarkets across Australia, as well as online, from early next year. The products will be sold under the Coles brand.
Coles trades from over 2,400 retail outlets, including 800 supermarkets and 200 convenience stores. No financial details of the deal were disclosed.
Stepping-Up Wholesale Business
Sainsbury's is stepping-up its pursuit of wholesale business after its botched attempt to take over rival supermarket group Asda for 7.3 billion pounds ($9.3 billion). The deal was blocked by the competition regulator in April.
The group is lagging its peers in wholesale. Last year market leader Tesco purchased wholesaler Booker for nearly £4 billion ($5.1 billion), while No. 4 player Morrisons has struck a raft of wholesale deals, including with Amazon and the McColl's convenience store chain.
Last week, the retailer posted a marginal decline in group sales in the first half of its financial year, with like-for-like sales down 1.0% and underlying profit before tax down 15% for the period.