The value of the global trade of goods in the world today is approximately 30 trillion US dollars. That’s 83 billion dollars per day of goods transported worldwide across land, air and sea. However, trade is nothing new; in ancient times, trade began as a barter system in which people exchanged one object for another. Eventually it moved to markets, then shops and now we have supermarkets with around 40,000 items in the store. How did this happen? Join Gary Kent as he explores the story of Sir George James Coles—a businessman and a philanthropist who chose to make a difference and started one of the biggest supermarket chains in Australia.
The value of the global trade of goods in the world today is approximately 30 trillion US dollars. That’s 83 billion dollars per day of goods being transported all over the world, across land, air and sea.
But trade is nothing new. In ancient times, trade began as a barter system in which people exchanged one object for another. People traded animal skins or services for food, weapons, clothing and spices. Some societies even used shells or pearls as currency, but during the 18th century, coins and money currencies became more prominent.
Now, trade has just boomed over the last two centuries, to a point where we are all involved in it every day of our lives. One of the areas that most of us trade in regularly is the local supermarket where we can find almost anything we need in one place, rather than having to visit multiple stores. It’s made shopping so much more convenient.
These self-service super shops offer a wide variety of food, beverages and household products all under one roof. On average, there are around 40,000 items in the store. The main supermarkets in Australia are Woolworths, Coles, IGA and Aldi.
So how did one of Australia’s largest supermarket chains begin? Well, join me as we follow in the footsteps of a man who changed the way we shop, do business and live – Sir George James Coles, a businessman and a philanthropist. His story will amaze and inspire you.
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THE EARLY YEARS
It all started here in the small rural railway town of St James, in the Victorian wheat growing district about 200kms northeast of Melbourne. This was where one of Australia’s largest retail stores and the largest employer in the nation started – right here in this tiny town.
George James Coles, was born on 28 March 1885 at Jung Jung, a township west of St James in the Wimmera district of Victoria, where his father had a small store. George was the second of ten children and as the eldest son, he was named after his father George Coles.
The family moved frequently, establishing several stores, including one here in St James and [one] at Lake Rowan, just 6kms away. The young George Coles was educated at the various state schools in the towns, and finally, as a boarder at Beechworth College.
The next year, in 1900, when George was only 15 years old, tragedy struck the Coles family. His mother, Elizabeth died after her eleventh pregnancy. She was 39 years old, and she and her baby Gracie didn’t survive childbirth.
George worked with his father in the Coles Stores learning the retail trade. He also spent some time working in other stores in Melbourne and took a bookkeeping course to help him understand the financial business. Then in 1910, full of confidence, George bought the two stores, one at St James and the other 6km east at Lake Rowan, from his father.
From an early age, George had watched his father’s businesses struggle as a result of extending credit too far and too often. So, in 1913, when George wanted to learn better trading methods for a bigger enterprise, he sold the two stores in St James and Lake Rowan and travelled overseas to the USA and Britain to observe the retailing methods in these countries.
NEW TRADING IDEAS
George was so impressed by the ‘5 and 10 cent stores’ that were common in the USA that on his return to Melbourne, and in partnership with his brothers Jim and Arthur he opened a Coles Variety store in Smith Street, Collingwood, on 9 April 1914.
George decided to run his shop following some of the new trading ideas, advertising nothing over 1 shilling or 10cents. His stores would only trade in cash and would offer quality items at an affordable price. His motto was ‘Nothing over half a crown’
On opening day, many customers eagerly came looking for a bargain. George’s philosophy was that the customer was always right. So, the Coles store also offered a guarantee of money cheerfully refunded if the customer was not satisfied.
The new Coles store was very unique for its time. Rather than the customer giving the storeowner a list of items that he or she selected from behind the counter, the supermarket allowed the shoppers to see all the store’s merchandise out on display and to make their own choice.
George Coles understood the value of the right location for his first store, so he chose a place on the main street in Collingwood. It was at the end of the penny tram line that ran from the city.
Another change George Coles made was to pay his employees higher than the going rate, believing that loyal, well-rewarded workers made his business more successful. These ideas were considered radical and almost unheard-of in Australia at the time.
FIRST WORLD WAR
Then, four months after the opening of the first Coles store, the First World War broke out. George’s brother Arthur immediately volunteered for active service, then Jim enlisted, but George held back for a time as he hated the idea of war, and like many people at that time, thought the war would be over soon.
But after Jim was killed in action in 1916, George sold his other store in Chapel Street, Collingwood to his uncle J.H. Coles, on the understanding that he would sell it back to him at the same price when he came back from the war.
George then enlisted in the Australian Imperial Force at the St Kilda Road barracks on 18 June 1917 and was sent to camp in tents at Royal Park until the army training began at Broadmeadows. Here George was chosen for officer’s training. But it wasn’t long before the young recruits boarded the ship for the two-month trip to England and the war.
George was stationed in France as a lance corporal in the 60th Battalion at the famous battle at Villers-Bretonneux. In April 1918, George was wounded when he was racing between the trenches with a message for the leading officer. Just as he reached the other trench he was shot by a sniper in the knee. A wounded George was evacuated back to England to convalesce.
While in London, George decided to check out the retail shops and supermarkets. He visited the head of Woolworths, to find out more about their retailing methods.
He even met with a Woolworths store manager and discussed what profit margin he worked on, the exact measurements of the counters and some of the English potteries. You see, plates and crockery as they were known, were one of the best-selling lines in the Coles store in Melbourne.
Sadly, two of George’s brothers died in the war, and George and his brother, Arthur were badly wounded. George was discharged from the army on 1 March 1919 in Melbourne. He still walked with a limp until a surgeon in Melbourne was able to operate on his wounded knee and give him more movement.
A year after his discharge, on 7 February 1920 George married Margaret Gertrude Herbert at Holy Trinity Anglican Church, Kew and they had a family of five children together.
NEW BEGINNINGS
George was grateful to his Uncle Jim for keeping the store in Collingwood going, and so left him to run it as his own. Then George and his two brothers decided to open a new store, on 20 June 1919.
They traded under the name G.J. Coles and Company and this store is still trading today. Coles’ philosophy was to sell large quantities of items at low profit margins, only deal in cash and try to buy mostly Australian-made goods.
In 1924, the brothers expanded and opened a new Coles store in Bourke Street in the heart of the city of Melbourne. Here they opened the first self-service cafeteria in Australia, and it became famous as the best eating place in Melbourne at that time.
The chain of Coles stores grew rapidly, and George Coles soon partnered with family members to form a board to manage the new shops.
In April 2014, the Coles company celebrated its 100th birthday. That’s a whole century dedicated to giving Aussie families quality products at prices they can afford.
The beginning of the 1930s was marred by the Great Depression. And despite these tough economic times, Coles did not stop its commitment, first made in 1922, to donate a large share of profits to charities, including hospitals, nursing homes and relief funds for the unemployed.
According to founder George J Coles, a commitment to giving to charity was a “business and a social responsibility”.
POST-WORLD WAR 2
Then the impact of World War II changed life in Australia forever. Many married women had now become part of the workforce, which meant they had less time at home to prepare food for the family. As a result, they began buying more ready-made foods. Coles saw this need and increased these products in Coles stores.
George Coles also began selling electrical appliances such as toasters and irons, and then a cosmetics range in the Coles stores. The plan was to develop a chain of supermarkets that would stock everything a family might have on their weekly household shopping list, in one location.
By the 1950s Coles began to print sales catalogues and made a display of sales goods on a table in the centre of the shop.
In 1960, Coles opened the nation’s first freestanding supermarket with even a car park as we know them today.
By the 1970s, Coles introduced the ‘Farmland’ range of home brand food products, helping to reduce the cost of groceries. Coles also launched a discounting program in 1971, reducing prices on chosen special items each week.
The 1980s was a decade of economic confidence in Australia, with the floating of the Australian dollar and unprecedented business expansion. Coles introduced the first electronic scanners into its stores in 1982, and for the first time gave customers a printed receipt which itemised all their purchases.
On 25 July 1985, Coles Myer Ltd was born and in 1987 a Coles Myer corporate headquarters was opened in Tooronga, Victoria, by Prime Minister Bob Hawke. The Coles Myer Emporium Ltd included Kmart, Katies, Liquorland, Vintage Cellars, Red Rooster and World 4 Kids.
With the rapid increases in technology and the advent of the World Wide Web in the 1990s, Coles adopted new technology that modernised its inventory tracking. In 1993, Coles launched its ‘Flybuys’ loyalty program, enabling customers to earn free air travel and other rewards simply by shopping.
Within a year of its launch, 3.5 million Australians were Flybuys members. Coles continued to embrace the evolution of technology and trialled online shopping within 23 Melbourne postcodes, in June 1999.
THE 21st CENTURY
By 2003, the Coles online channel grew to become one of the largest online food retailers in the country. By mid-2004, Coles established a nationwide network of Coles Express service stations with their distinctive red and white signage, providing customers with greater access to food through its new petrol and convenience stores.
From 2010, Coles launched a series of animal welfare and responsible sourcing initiatives, including hormone-free beef and cage-free eggs. Then in 2012, Coles launched the Australian First sourcing policy to buy Australian-made products.
Back in 1948, the 100th store was opened in Echuca, Victoria and today there are over 800 Coles stores across Australia. The distinctive red and white Coles sign is recognised all over Australia. Few people have made their mark on the shopping habits of Australians like George Coles.
WHAT OF THE MAN?
But what of the man, George James Coles, the founder of the Coles Supermarkets? Well, George was a visionary and wanted to create a supermarket for all Australians. In fact, in his lifetime, the Coles supermarkets became the largest in the southern hemisphere.
However, despite being the founder of Coles Supermarkets, George was never a millionaire, because he gave a large percentage of his income to charity. He donated the funds for the maternity wing called The Margaret Coles Hospital at the Alfred Hospital in Melbourne, as well as an extra 10,000 pounds to the Alfred Hospital extensions.
George also assisted the National Gallery of Victoria, the Royal District Nursing Association, and enabled the Brotherhood of St Laurence to set up a retirement village at Seaford by purchasing the land for them.
George Coles also paid for the Billy Graham Crusade in Melbourne to be publicly broadcast across the nation in the early days of television. He helped fund a hall at his local church, and assisted many charities and societies such as the Boy Scouts and the Corps of Commissionaires, a support and welfare organisation for war veterans who have responsibility for the Shrine of Remembrance in Melbourne.
His wife Greta’s favourite charity was the National Guide Dogs for the Blind. Today the Coles Group still supports this charity that trains and provides guide dogs and companion dogs for Australians in need.
Now, a knighthood is often conferred for outstanding public service. And in 1957, George James Coles was given the Knight Bachelor for his charitable activities. Now what is really surprising, is that his four brothers, Arthur, Edgar, Kenneth and Norman were also knighted for philanthropy, service to charities and public service.
That’s five brothers in one family knighted for their charitable contribution to Australian society. That is quite an astonishing achievement. But what made the family of brothers commit to charities and public service?
Well, George Coles often spoke of how his parents encouraged self-discipline, honourable standards, responsibility, loyalty, and charity. The family were regular church goers in the Anglican faith and embraced a practical religion where the Christian principles were a natural part of their lives.
In his eighties, George said,
“Above all else, I owe most to my parents for the grounding they gave me in the Christian religion.”
George Coles was known as a faithful and generous Christian.
Sir George Coles died peacefully at his home on Lansell Road in Toorak Melbourne in December 1977 at the grand old age of 92.
His great legacy to our country was not just in the bricks and mortar of grocery stores and retail outlets, but it was the fact that he contributed to the well-being of society and lived by the teachings found in the Bible, that his parents had taught him.
His life could be summed up with this quote from Shakespeare’s play, Twelfth Night:
“Someone who has greatness distinguishes themselves from others, sets themselves apart and is truly eminent in their field.”
THE PHILANTHROPISTS
Sir George James Coles (1885-1977), this noted Australian entrepreneur, businessman and philanthropist, distinguished himself and is an example to us all.
So, what does philanthropy mean? Well, the word Philanthropy comes from the Greek, meaning ‘love for humanity.’ But modern definitions include the desire to promote the welfare of others, and the concept of voluntary giving by an individual or group to promote the common good and improve the quality of life of others.
There is social research that shows that philanthropy does more than just help the recipients. It satisfies deep human needs in the givers as well. It is a powerful force that opens avenues to finding purpose, meaning, success and happiness in life.
Even people who have very little money are eager to give, and feel good when they share what they have with those less fortunate. Research shows that in households with an average annual income, there is still a strong habit of giving to charity, to helping others.
A research paper published recently in the journal Science, discussed how students participating in a study were given money. They were asked to spend half of it on themselves, and the other half to give it to some person or charity.
Now this is where it gets interesting. Those who donated half the money showed a significant increase in their inner happiness; while those who kept all the money and spent it on themselves, did not.
Other research work has shown that donating to a charity or offering aid to others can actually make the giver healthier and less stressed.
In his book Who Really Cares, economist Arthur Brooks cites studies showing that Americans who make gifts of money and time are more likely to prosper and be satisfied with life than non-givers in the same demographical area.
A 2014 book by two Notre Dame social scientists, called The Paradox of Generosity: Giving We Receive, Grasping We Lose, combined national surveys with in-depth interviews and group observations.
It concluded that,
“the more generous people are, the more happiness, health, and purpose in life they enjoy.”
This association is strong and highly consistent. Generous practices actually create enhanced personal well-being. As Ralph Waldo Emerson says,
“It is one of the most beautiful compensations of life that no man can sincerely try to help another without helping himself.”
LOVE IS GIVING
Social researchers have observed that, ‘People often say that we increase the love we have by giving it away.’ So philanthropy and generosity are like love.
Love is the foundation of the Christian belief. So, it’s not surprising that it has been noted that Christians are the most generous in the donations and support of most charities.
Giving is also at the very heart of the Bible. God is the greatest giver of all time. He gave all He had to give us happiness and eternal life. John 3:16 tells us this:
“For God so loved the world that He gave His only begotten Son, that whoever believes in Him should not perish but have everlasting life.”
It’s an amazing thought that the God who created the universe loves you and me that much. It’s an unbelievable gift. It’s a promise of a generous and unbounding love that can never be taken away from us.
God’s love can be a solid foundation in our lives that we can always count on, no matter how we feel and no matter what our circumstances are. God loves us on our good days and our bad days. He loves us when we feel down and broken, and He loves us unconditionally. Nothing can ever diminish His love for us.
In fact, God shows us what real love looks like. In 1 John it says,
“God showed how much he loved us by sending his one and only Son into the world so that we might have eternal life through him. This is real love—not that we loved God, but that he loved us and sent his Son as a sacrifice to take away our sins” (1 John 4:9-10 NLT)
People may say they love you, but God didn’t just say it, He showed us how much He loves us. God sacrificed his Son for you and me. When Jesus died on the cross for you and me, he was saying he loved us so much he’d rather die than live without us.
God shows us what real love looks like. Real love makes sacrifices. Real love gives everything and real love endures for all eternity. That’s the kind of love only God has for us. He’s waiting with open arms to show us his goodness, mercy, and love.
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Dear Heavenly Father, We thank you for the unconditional and never-ending love that you give us. Even though we are often ungrateful and completely unworthy of your love, you never leave us or forsake us and you continue to bless us in so many ways. Thank you for Jesus, the foremost expression of your love for us. It’s our prayer that we will be ready to meet Him when He comes to bring peace to our world and to our hearts. Please bless us and our families, in Jesus’ name. Amen.