Coles Group and Microsoft have announced a new five-year strategic partnership to collaborate and co-innovate a range of digital initiatives to help Coles grow sales and e-commerce capabilities, increase operational efficiency and enhance customer experiences.
Coles will leverage Microsoft’s cloud, AI and edge computing capabilities to build an AI-as-a-Service platform, modernise its IT estate and unlock opportunities to use AI and machine learning.
Coles will use technologies like Microsoft’s Azure OpenAI Service to deliver a more personalised and consistent shopping experience. The first use case, Tell Coles, is a generative AI model that generates customer sentiment insights based on customer feedback surveys and delivers them to store managers.
With Microsoft Fabric at the core of the Coles Digital Data Platform, machine learning models will provide real-time, individual and family-relevant recommendations across all digital channels.
Coles and Microsoft will co-innovate to explore how Coles’ Intelligent Edge Backbone (IEB) can connect and manage IoT devices across Coles’ supply chain and into stores to advance sustainability goals, improve customer experiences, reducing stock loss, and boost team member productivity and safety.
In addition, the partnership will focus on growing diversified revenue streams for Coles by reaching more ready-to-buy shoppers, increasing personalisation and capitalising on market insights through its Coles 360 retail media business.
Coles chief technology officer, John Cox said, “We’re delighted to refresh our longstanding partnership with Microsoft to drive our strategic priorities and create more value for our customers, team members, suppliers and shareholders.
“Microsoft’s proven expertise and innovative solutions will help us build the digital foundations and enablers that will empower us in our purpose of helping Australians to live and eat better every day.”
Microsoft Australia and New Zealand managing director, Steven Worrall added, “We’re thrilled to deepen our partnership with Coles, a true leader in Australian retail. Together, we’ll leverage Microsoft’s cloud, AI and edge computing capabilities to drive meaningful transformation, helping Coles stay ahead in an ever-evolving, customer-first landscape.
“This partnership is a great example of how our technology empowers retailers to innovate, grow and deliver exceptional value in a highly competitive market.”