Coles Myer, the Australian supermarket retailer, is expected to report strong annual profits this week, aided by high consumer spend, cost cutting and a discount fuel offer, according to media reports.

The company has also recently revamped its fresh food sections to entice more customers to its supermarkets.

The company is expected to post a net profit of A$593m in the year ended 25 July compared with A$429.3m in the previous financial year ended 27 July 2003.