Coles shares on watch after revealing key Microsoft alliance

The Coles Group Ltd (ASX:COL) share price will be on watch after it revealed a major alliance with Microsoft as part of its Smart Selling strategy…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Coles Group Ltd (ASX: COL) share price could be on the move on Tuesday after revealing a major alliance with Microsoft that will see the supermarket giant use artificial intelligence to revamp its supply chain, product range, customer engagement, and workforce.

According to a report in the AFR, Coles has signed a long-term, multimillion-dollar agreement which will see it use Microsoft's Azure cloud platform, Dynamics 365 enterprise resource planning, and modern workplace suites to support its Smarter Selling program.

Management expects the Smarter Selling program to deliver $1 billion in cumulative savings by FY 2023. This will be achieved through a number of initiatives including the use of technology to automate manual tasks, allowing Coles to offset the impact of rising costs including energy and labour.

The report explains that Coles plans to build an enterprise data platform in Azure, which it believes will create advanced analytics and artificial intelligence to improve the performance of stores.

This will be done by assisting store managers with things such as forecasting, on-shelf availability, and community preferences. It also aims to improve range reviews by better understanding which products are substitutable.

In addition to this, the company aims to use artificial intelligence to improve and personalise its offers. This will take into account things such as purchases, weather, and local community events.

Coles chief information and digital officer, Roger Sniezek, told the AFR: "By using this huge power of Azure it enables us to do computation on a scale we couldn't do before because we were limited by the amount of tin (physical storage capacity) we have on site. Going forward this enables us to put even more data into those AI algorithms and drive better outcomes for our customers."

This Microsoft deal appears to be the final piece in the puzzle for Coles following its agreement with German automation specialist Witron for two fully automated distribution centres and its partnership with Ocado to build two highly automated fulfilment centres and a new website.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Best Shares

Top ASX shares to buy with $500 in November 2024

$500 worth of ASX shares might not sound like a huge investment. But, to realise the benefits of compounding, you…

Read more »

A diverse group of people form a circle at a park and raise their arms together.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors ended the trading week on a high note this Friday...

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Catapult, De Grey Mining, Domino's, and Nufarm shares are charging higher

These shares are ending the week strongly. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Up 70%, is it too late to invest in Xero shares?

This ASX tech darling hit a new all-time share price record yesterday.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Market News

Why this ASX uranium share is plunging 25% on Friday

Let's see why investors are smashing the sell button today.

Read more »