Highlights

• Coles has confirmed an Accenture partnership that will shift some corporate roles offshore and lead to redundancies.

• Media reports put the potential number of affected back-office roles at hundreds and, at the upper end, up to 1,000, although Coles has not confirmed a final figure.

• H1 FY26 sales revenue reached AUD 23.6bn, while NPAT excluding significant items rose 12.5% to AUD 676mn.

• The outsourcing move comes as Coles continues to invest in automation, eCommerce and omnichannel fulfilment while seeking lower support-function costs.

A staff email has placed one of Australia's largest supermarket groups at the centre of a new outsourcing debate. Coles Group (ASX:COL) chief executive Leah Weckert has confirmed a partnership with Accenture that will move some corporate functions offshore, with redundancies to follow. Media reports put the potential impact at hundreds of roles and, at the upper end, up to 1,000, but Coles has not published a firm final number. The move lands while Coles is growing sales, expanding online operations and investing in automation, making the balance between lower support costs and execution risk central to the story.

What Has Coles Actually Confirmed?

Coles has acknowledged the Accenture partnership and confirmed that some office-based roles will move offshore as part of the transition. Redundancies are also expected. The company has said the arrangement is intended to give it access to capability at greater scale and pace, help teams move faster and support the goal of reducing costs while continuing to deliver value at the checkout.

Coles has also indicated that redeployment and upskilling opportunities will be considered where possible for affected employees. What remains unconfirmed is the final size of the programme. Media reporting has referred to hundreds of positions and, in some coverage, up to 1,000 back-office roles. The upper figure should therefore be treated as a reported estimate rather than a company-confirmed target.

Why the Cost Push Matters Now

The financial backdrop helps explain why Coles is examining support functions even while the core business is performing well. For the first half of FY26, the group reported sales revenue of AUD 23.6bn, up 2.5% on the prior year. Net profit after tax excluding significant items increased 12.5% to AUD 676mn, while group EBIT on the same basis rose 10.2% to AUD 1.231bn. The interim dividend was 41 cents per share, fully franked.

The supermarket division also recorded a 6.1% increase in adjusted sales revenue excluding tobacco. More strikingly, eCommerce sales rose 27.0%. That growth is important because Coles has been investing in automated distribution and omnichannel fulfilment. Moving selected support functions to a lower-cost offshore model gives the company another lever to fund those investments without relying solely on higher shelf prices.

Share Price Reaction Has Been Muted

Coles shares were around AUD 24.17 on 6 August 2026, down 0.21% for the day and near the upper end of the 52-week range of AUD 20.10 to AUD 24.59. Market capitalisation was roughly AUD 32.4bn.

The restrained reaction suggests the restructuring has not yet materially changed the earnings story. Coles has not quantified the savings, final redundancy count or any restructuring charge, leaving the financial effect difficult to measure.

Coles Is Part of a Wider Corporate Shift

The decision sits within a broader pattern among large Australian employers using offshore service hubs, automation and external technology partners to reduce the cost of finance, HR, IT and administrative functions.

For Coles, support-function savings could help protect margins and fund online investment. The exposure is execution and reputation: offshoring can create service disruption, loss of institutional knowledge and political or union scrutiny.

What to Watch

The next details are a confirmed number of affected roles, the eventual redundancy count and any restructuring or significant-items charge in the full-year accounts. Management's estimate of savings will also matter, as will any union response or Fair Work involvement.

Coles has confirmed the direction of the restructure, but its final scale remains unresolved.

Risks

The programme carries execution and reputational risks. Service quality could be affected during the transition, redundancies may reduce internal knowledge, and political or union scrutiny could increase. The financial return is also uncertain because expected savings and transition costs have not been disclosed.