What is Coles Plus?

Date : 19 February 2021

Nick Miles

Head of Insight - Asia Pacific

Coles has launched a new online subscription service called Coles Plus that offers benefits across the Group's businesses for $19.99 a month.

New sub links benefits across the Group's businesses

The new service was revealed at the retailer's H1 results this week and replaces its Delivery Plus service that it launched in November 2019. Unlike the old service, the new sub offers one price point, plus multiple benefits to members, with Coles describing its as 'unlike anything currently available in Australia'. Those who sign up will get free delivery on all Coles Online orders over AU$100, 2x Flybuys points on all eligible Coles Online purchases, free delivery on one Liquorland online order over AU$50 each month, free access to Coles' new rapid click & collect service (ordinarily priced at $5 per order), plus access to the retailer's priority Customer Care line.

Source: Coles

Online set to drive over 50% of market growth between 2020-22

Coles announced online B2C sales grew 61% in the first half of FY21 earlier this week. The global pandemic has accelerated the penetration of online in Australia significantly and this is a trend that we expect to continue over the coming years. Our new data suggests that online grocery retail achieved 3.1% of total market sales in 2020 and by 2022 this number will have risen to 5.0%. As the market cycles tough trading comparatives in the second half of 2021 and early 2022, certain channels will contract, meaning that we forecast online will drive over 50% of total market growth in the coming few years. For more insights - susbscribers can check out our Australia Channel Forecasts 2020-22 report.

Rewarding loyal customers with an enhanced experience

With this in mind, this move by Coles to create a stronger proposition to lock in loyal customers across its portfolio of business is a wise move. Coles Chief Executive eCommerce, Ben Hassing, commented, "Coles Plus is the latest way we are rewarding the loyalty of our digitally-engaged customers, ensuring Coles leads anytime, anywhere, anyhow shopping. We continue to see significant growth in demand for online grocery shopping and we are investing in customer experience and capacity, which is having a positive impact on customer satisfaction. Feedback from Australian families already using Coles Plus has been overwhelmingly encouraging and we are planning on adding more exciting updates in the future.”

Join our Future Talk Australia webinar on 11 March...

Subscribers to Retail Analysis are invited to join our session looking at 'Australia and the future of online grocery' on 11 March 8am AEDT / 10 March 9pm GMT - for more information and to sign up click here

Australia and the future of online grocery

11 March 2021 | 8:00AM - 9:00 AM (AEDT)
10 March 2021 | 9:00PM - 10:00PM (GMT)

Join us to learn more about how global trends are impacting Australia, plus how online grocery will continue to drive significant growth and evolve over the coming years.
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