Australia’s supermarket giants have entered into a delivery war, offering customers unlimited deliveries if they pay a subscription fee.
Australia’s supermarket giants have entered into a delivery war, offering customers unlimited deliveries if they pay a subscription fee.

Delivery wars: Coles and Woolies compete over subscriptions

Australia's supermarket giants have entered into a delivery war, offering customers unlimited deliveries if they pay a subscription fee.

Coles today launched its subscription service in an effort to increase the supermarket giant's reach among those too busy to shop.

Customers paying $19 per month will get unlimited deliveries for grocery shops over $100, while those who pay $14 will get unlimited deliveries between Tuesdays and Thursdays.

The move follows Woolworth's September announcement of "Delivery Unlimited", where customers get free delivery on their weekly shop provided they spend more than $100 on each order.

Under the Woolworths model, customers can pay an annual fee of $169 or $19 a month.

A cheaper option only has deliver from Tuesday to Thursday, costing $119 annually or $15 per month.

Coles has unveiled a new unlimited delivery subscription. Picture: Liam Kidston.
Coles has unveiled a new unlimited delivery subscription. Picture: Liam Kidston.

Coles delivery fees vary between $4 and $20, depending on the location, time of day or length of delivery window.

Woolworths delivery fees range from $3 to $15 - but are free for purchases over $300.

Coles chief executive Steven Cain noted in August that consumer behaviours were "changing faster than ever" amid heightened competition and the company's response already included a $1 billion supply chain overhaul.

Coles Online general manager Karen Donaldson said on Wednesday that online shopping was becoming increasingly popular for time-poor customers.

"On average, the cost of a Coles Home Delivery window is $10," Ms Donaldson said.

"Delivery Plus will allow customers who regularly shop online to save hundreds of dollars a year."

Coles revealed last week that supermarket sales rose just 0.1 per cent in the first quarter amid fierce competition from the likes of traditional rival Woolworths, low-cost international chain Aldi, and Amazon, which offers subscriptions to items such as store cupboard staples and nappies.


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