Coles has ended its three-year partnership with controversial American software and cybersecurity firm Palantir, while also claiming the technology was never used on its customers for surveillance.

Palantir has attracted public scrutiny due to its partnerships with the US Government’s Immigration and Customs Enforcement (ICE) agency and the Israeli Defence Forces (IDF). Critics of such activities supported a campaign against Coles when it first announced its partnership with the firm in early 2024.

The campaign against Coles’ partnership with Palantir, led by the collective activist group Get Up, attracted more than 85,000 signatures from the public. It criticised the use of “military-grade” technology on supermarket shoppers.

But Coles – after confirming it would not be renewing Palantir’s contract after its 2027 expiry – claimed the technology was never used for surveillance.

“Palantir’s technology has delivered value across Coles’ operations, particularly in rostering, store operations and supply chain planning,” a spokesperson for Coles said. 

“The technology has helped Coles drive operational efficiencies that ultimately mean we have the products available when customers need them and team members in the right place at the right time to serve our customers.”

Inside Retail has asked Coles to explain why it chose not to renew its contract with Palantir. It has not received a response.

Coles previously claimed that the software is used for operations such as bakery production planning and rostering.

“It’s an operational platform focused on helping stores run more effectively,” the spokesperson added. “Palantir does not control the data, nor can it independently repurpose it.”

Get Up has said that the end of the partnership “wouldn’t have happened” without its community campaign. “Less than a year ago, this issue was barely on the radar. But when Get Up members flagged the issue, we knew our community had to respond,” it said.