The Real Media Collective (TRMC) accused Coles Supermarkets of “using the environment” as an excuse for switching from printed to digital catalogues – a move that’s expected to cost printer IVE Group between $35-$40 million.
“The claim that Coles is stopping production of its supermarket catalogues due to environmental concerns is simply disingenuous,” says Kellie Northwood, CEO TRMC, the Australian industry association representing the interests of companies in the paper, print, publishing/media and related distribution sectors.
“I literally did think – ‘not that old chestnut’, when I read their release. It is an excuse that many have fallen back on before and our industry has more than enough environmental credentials to stand proudly on our recyclability and renewability record.”
Coles Supermarkets said it is switching its catalogues to digital platforms after the COVID-19 pandemic had pushed more people online. Printed catalogues will now only be provided in-store.
“For every Coles customer spending 60 seconds browsing a digital catalogue, they will emit 12g of CO2 compared to looking at a printed catalogue for a day and only emitting 0.5g of CO2,” Northwood says.
“All of Coles catalogues are made from a renewable resource, using bio-diverse and planted forestry principles, and the paper making process is powered by hydro-electricity – paper carries the highest environmental credentials over e-waste and CO2 powered digital streaming.
“In an era where Australia is in recession and double-digit unemployment is looming, the impact of Australian job losses should be met with concern, especially when supermarkets have made record profits from the COVID pandemic. Digital media channels reduce local employment and contribution to local economies, and regional economies will suffer the most with major employment for paper manufacture being within Maryvale, Victoria and Boyer, Tasmania.
“Whilst at times seen as a ‘quick cost out’ or ‘customer data collection’ the long-term ramifications are severe, particularly in economic times of local rebuilding. Australia’s print media channels alone, excluding design and editorial, employ 258,000 Australians across metropolitan and regional locations, skilled and unskilled labour sources.”
In a statement to the ASX, printer IVE Group said it had been informed by Coles Group of a plan to cease distribution of printed catalogues from September 9, 2020.
“IVE expects this to reduce its revenue by approximately $35-$40m per annum,” the company said. “The Group remains committed to supporting the continued strength of the printed catalogue as an important component of an integrated communications mix to a diverse national consumer base.”
The Coles catalogue is currently printed and distributed to about seven million Australian households weekly through approximately 14,000 walkers nationally. Northwood said customers across all of Australia should have been considered by the company.
“We know that a lot of Australians rely on catalogues to plan and budget for their weekly shopping, both for themselves and their families. There are many Australians who are being left behind by big brands and digital social exclusion is a growing divide. With this example, our most vulnerable, will not have access to the best offers from Coles Supermarket catalogues once they go online.
“We know that 14.8 million Australians find catalogues to be a helpful shopping tool and, when a catalogue is not delivered in the letterbox, we see an enormous increase in complaints from customers who didn’t receive their weekly specials," says Northwood. "Brands who move away from media channels that customers see as useful do so at their own risk.”
