Ann: Intention to demerge Coles - Briefing Presentation, page-67

the problem with that theory is that they only have a certain amount of floor space in existing stores.

and trying to build new mega stores in future would be pointless as it would end up like the disaster in the UK- not enough volume of stock sold to get margins up as supplier's discount would be minimal.

Coles is also a disaster as a spinoff, the date of which is still some time down the track. and the way Coles is losing business to Woolies and Aldi and IGA, it is anyone's guess how bad this could be and how low the market cap will be at the IPO.

cheers crazypunter