The wholesaler has plans to start offering a delivery service for business customers in the Melbourne metropolitan area.
Fresh and dry groceries available for delivery
The retailer has set up a dedicated website (www.costcowholesaledelivery.com.au) for business customers, indicates that the retailer will deliver products to locations within 10km of its Docklands outlet. The customer must be a member of Costco to qualify for delivery, plus order over AU$1,000 of products. Products offered for delivery appear to include fresh meat and produce, grocery items, beverages and office suppliers. Deliveries placed before 3pm, will also qualify for next day delivery.
First mover advantage towards B2B online
Costco operates online and delivery services in a number of other markets globally and this move is a natural progression of the business in Australia, particularly for loyal customers who order in bulk regularly. This development is the latest in a flurry by retailers who are either moving into the online grocery sphere or looking to strengthen operations ahead of an imminent market launch by Amazon. Costco has been very successful since launching into Australia and we expect this new service to help the business attract more business with independent retailers, as well as hospitality, restaurant and catering business, an area where Amazon will likely compete with the wholesaler in the future.