Australia's Coles Myer is facing hurdles in its major restructuring initiative. In June 2001, the major retailer's bosses want to create a centralised buying system for its Myer-Grace Bros, Target and Kmart divisions. This would save a considerable amount of money and streamline many systems.

On June 20, officials of the Australian Services Union (ASU) said that they would oppose any moves to shift the Target head office from Geelong to Melbourne.

Warren Flick, an executive of Coles Myer, wants the one centralised buying system to be based in Coles Myer offices in the centre of Melbourne. The ASU is trying to save jobs at Geelong. Analysts believe that the new system could save up to A$70m per annum.