Since its foundation in Collingwood, Victoria in 1914, Coles has grown to become the second-largest retailer in Australia after its principal rival, Woolworths, in terms of revenue.

This represented a successful introduction of a "category killer" – by comparison, around the same time Coles unsuccessfully attempted to negate the arrival of Toys "R" Us with the short-lived chain World 4 Kids.

Following Target's operating loss of $43m in 2001, the chain's format was repositioned to compete less with Kmart, Woolworths's Big W, Harris Scarfe and The Warehouse, and more with Myer, with a focus on "middle class" quality products, especially clothing and home wares.

Fletcher abolished the shareholder discount card, on the basis that it had eroded margins while providing little benefit, and was unpopular with institutional investors.

Since their introduction in the early 1990s, the card had induced a tenfold increase in the number of Coles Myer's shareholders, with the overwhelming majority owning only small parcels of shares.

Woolworths subsequently gained entry to part of Caltex Australia's network to provide a recognised brand for its fuel offer.

[16] Coles Group Limited also changed its listed code on the Australian Securities Exchange from CML to CGJ, which references back to its first ever registered company name of G.J.

The Coles board rejected the offer stating it significantly undervalued the company, and was conditional on a due diligence process, without a guarantee that the deal would go ahead.

[20] In November 2006, long-term senior supermarkets executive Peter Scott was dismissed for an unspecified breach of the company's code of conduct.

[21] On 23 February 2007, the company announced a downgrade of expected earnings and that it was considering ownership options, including the possibility of a full sale of the business or restructuring such as a demerger.

[23] On 3 April, Solomon Lew, the former chairman and long-time antagonist of the current board and management team, sold his 5.8% shareholding of the company.

A large portion of these shares were bought by Wesfarmers, which was believed to be part of a consortium of bidders including Macquarie Bank, PEP and Permira.

[25] In July 2007, Wesfarmers announced it intended to buy Coles Group for $22 billion, the largest take-over bid in Australia.

[26] In August 2007, Wesfarmers foreshadowed its plans for the restructuring of Coles Group following its anticipated takeover, including investment of A$5 billion, establishing three separate divisions (including a combined Bunnings/Officeworks "big box" retailing division), the possible sale of Kmart, and the exit of Coles Group from its head office base at Tooronga.

[27] The independent expert report published in October 2007, advising shareholders preparatory to the proposed sale was critical of the culture within Coles Group.

The Scheme was implemented on 23 November 2007,[30] ending Coles Group as a company with its subsidiaries merged into Wesfarmers' business structure.