Coles announces major expansion plans

Coles Group is making waves in Melbourne’s south-east with a bold acquisition of a permit-ready town centre site in Clyde.

This strategic move positions Coles at the helm of a dynamic mixed-use complex, set to open next year at 370S Pattersons Road, near the Clyde North border.

Anchored by the supermarket giant, the development promises a vibrant blend of speciality retail and essential services, including childcare and healthcare facilities.

With the potential for future public transport access through the extension of nearby Bells Road, this 3.53ha site is poised to become a bustling hub of activity.

In a deal worth just under $19.5 million, Coles is expected to follow its tried-and-true strategy of selling the asset post-completion, echoing its recent actions at Cobblebank Village near Melton.

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The proposed Orana Village

Coles is set to have acquired the site in a deal worth $19.5m.

This expansion comes hot on the heels of Coles Group Property Developments’ quiet acquisition of a major development site in Melbourne’s west in June 2023.

The retailer reportedly shelled out $33 million for the 17.14-hectare block on Coburns Road, Kurunjang, opposite Crest Property Group’s Willandra housing estate, a key area in Melbourne’s growth corridor.

The timing of this purchase is significant, as both Coles and Woolworths face increasing scrutiny over alleged “land banking” practices.

This involves acquiring land to block competitors from establishing stores, particularly in regions where they already have a stronghold.

Despite Coles’ denial of such tactics, evidence suggests they may hold land for extended periods without immediate development, potentially stifling competition.

An aerial view of the Orana Village development.

The issue of land hoarding is now under the spotlight of federal and state governments, who are considering changes to zoning laws to open up development opportunities for smaller chains. The Australian Competition and Consumer Commission (ACCC) announced in September that it would further investigate “land banking” claims, with a final report expected next year.

This unfolding narrative challenges the balance between corporate strategy and fair competition, setting the stage for potential regulatory changes that could reshape the retail landscape.