Coles has opened a new front in its food price war but this time its larger rival, Woolworths, is not the target.

The company is now offering $1 per litre milk through more than 600 Coles Express outlets Australia-wide in what is seen as a direct attack on the traditional corner shop - a sector which is already suffering in the cross fire supermarket giants’ food price war.

Cheap milk at Coles Express is seen as a direct attack on the corner store. Credit:Paul Harris

Coles has not added its $1 bread to its convenience store offering but did cut the price of its Coles brand bread from $2.49 to $2.30.

According to a recent report from industry research firm Ibis, consolidation is inevitable in the same way that Coles and Woolworths have cornered the supermarket sector.