On 25 May, we reported on the counterintuitive strategies currently employed by Coles. More details have now emerged. The key problems within the business seem to be caused by high-cost infrastructure and a drift towards home brands, progressively destroying local suppliers and reducing customer choice. The Age reported on Coles' latest plans, which in our assessment will generate short-term gains, but medium-to-long term serious loses, due to further weakening of the brand and an increase in the underlying cost structure. Coles now intends to expand its generics range from 20% to 40%, which will lead to the destruction of more local suppliers. In addition, Coles will expand its online business, adding $1 billion in capital expenditure. But, don't worry, because it will concurrently deploy an "advanced analytics centre, to solve problems". None of these initiatives will improve the customer offer and day-to-day prices. Aldi and Costco must have been pleased to learn about all this.