Coles Myer is one of Australia's largest retailers with more than 2,600 stores throughout Australia and New Zealand. With over 400,000 shareholders, more than 165,000 employees, millions of customers and a store in just about every town, we are a part of the fabric of Australian communities.

Our aim is to be Australia's number one retailer in all our brands by delighting our customers, growing our shareholder value and being the best team.

As one of Australia's leading retail and largest employers, Coles Myer is committed to the communities in which we live and operate, and to ensuring we integrate good corporate behaviour into every aspect of our operations.

We have established a set of group-wide values and behaviours which provide a framework for how we do business. Our values are Integrity, Respect and Recognition, Passion for Excellence and Working Together.

Our vision is to be Australia's number one retailer in all our business.
This vision is supported by core goals and strategic priorities.

Our Goals

Goal: Delighting our Customers
Our businesses strive to delight our customers every day by providing the best value, the best range and best convenience to our customers.
We have also developed a comprehensive loyalty offering including:
• Coles Express fuel discount offer
• A revitalised and improved FlyBuys
• Coles Myer Source MasterCard
• MYER one rewards program
We measure how well we are meeting our customers' needs by conducting customer sentiment and customer service surveys.

Goal: Being the Best Team
Being the best team is about having the right people in the right roles, developed in the right way and acting as one team.
A key success factor in delivering this goal has been to realign the culture of the organisation through four key platforms:
• Recruiting and developing our people
• Building leadership capability
• Performance, reward and recognition
• Safety

Goal: Growing our Shareholder Value
To build sustainable improvement in Group profitability and shareholder returns we are pursuing a stretch internal goal of $800 million profit after tax by the end of the 2006 financial year.

Our Strategic Priorities
To achieve our goals we have identified three strategic priorities for Coles Myer:
1. Grow the food, liquor and fuel business
2. Restore operational excellence to non-food brands (Kmart, Target, Myer and Officeworks)
3. Leverage the scale of the Coles Myer Group

Priority 1: Grow food, liquor and fuel business
Central to growing the food, liquor and fuel business is offering the best value to our customers in more convenient locations. The key elements include:
• Growing our store network through new store openings.
• Improving our fresh offer.
• Expansion and implementation of our three-tiered housebrand offer, which provides customers with an improved range, each focusing on value, quality and choice. Rollout of the three-tiered approach to liquor formats: convenience, value (large-format) and specialty stores.
• Leveraging our loyalty programs.

Priority 2: Restore operational excellence to non-food brands
Central to restoring operational excellence in the non-food brands has been the development of distinct brand positioning and differentiated merchandise offerings to win back the support of our customers. This means:
• Kmart is a discount department store promoted as 'Cutting the Cost of Living' and underpinned by its lowest price guarantee.
• Target focuses on its on-trend, high-quality merchandise at affordable prices, with rapid sell-through of goods.
• Myer, our department store business, is the destination for modern fashion brands for women, men and home.
• Officeworks is the number one choice for home and small businesses in both retail and direct channels, for stationery and office supplies.

Priority 3: Leveraging the scale of the Group
Leveraging the huge scale of Coles Myer for the benefit of our customers and our shareholders is about demonstrating how the whole can actually be substantially greater than the sum of individual brands.
To capture the full value of this unique Group we have developed a number of programs:
• Cultural transformation - new leadership, new strategies, new programs and, most importantly, new values and behaviours.
• Supply chain transformation - improve the availability of goods for our customers, simplify processes and costs for our suppliers and to enable us to run a more efficient distribution network.
• IT transformation - remove complexity, duplication of systems, effort and costs across our businesses while improving service to stores and to customers.
• Groupwide customer loyalty offer - reward all customers based on what they spend in our stores.

Values and Behaviours
We are committed to a clear set of values and behaviours, which helps make Coles Myer a better place in which to work, shop and invest for the long term.
The following values and behaviours form the foundation stone of who we are and what we do at Coles Myer. They are:
• Integrity
• Respect and Recognition
• Passion for Excellence
• Working Together
These values and behaviours ensure that:
• We focus as much on HOW we do things as on WHAT we do.
We work towards sustainable success by putting values at the heart of our goals:
• being the best team, delighting our customers and growing shareholder value.

For more information please visit:  www.colesmyer.com