Weetbix in the mail as Coles signs OzPost for fulfilment

The new deal extends an existing arrangement that saw Coles use Australia Post for delivery services. Australia Post will now take over Coles' fulfilment centres at Clayton in Melbourne and Turella in Sydney, taking on 300 Coles staff in the process.

Australia Post said it will implement new systems and workplace practices to improve the efficiency of the operation.

Australia Post managing director Graeme John said the company is looking to expand its fulfilment operations.

"Coles Online will continue to own the stock, set the ranges, maintain the customer relationship and market the brand - this is still our business but we are now using an expert agency to complete the order processing," said e.colesmyer managing director Jon Wood.

News of the Coles-Myer deal followed Australia Post's announcement of a record $297 million net profit for the 2001-02 financial year, up from $274.5 million in the preceding year.