Woolworths has launched a revamped subscription service for online grocery deliveries in Australia.
Flexible subscription will appeal to different customers
The new service, called 'Delivery unlimited', allows subscribers to get free deliveries for their online groceries, as long as they spend over AU$100 on each order. Currently Woolworths deliveries cost up to AU$15 for orders under AU$100, but as little as AU$3 for baskets of between AU$250-299. The new subscription has two price points:
- Delivery on any day of the week - costs AU$169 for an annual sub or AU$19 a monthy (equivilent to AU$228 annually)
- Delivery from Tuesday to Thursday - costs AU$119 for an annually sub or AU$15 month (equivilent to AU$180 annually)
Revamp of old Delivery Saver service...
The new subscription appears to be a revamp of its Delivery Saver scheme that launched back in 2015. Apart from the new name, the new scheme allows more flexibility by allowing people to sign up on a month-by-month basis versus a flat annual subscription. It also provides a cheaper alternative if customers are willing to be more flexible and accept deliveries on days where demand is currently less high.
Online growth a top priority for the 'big two'
Woolworths and Coles both reported impressive growth from their online operations in their FY19 annual results, with Woolworths' online sales up 31% on the previous year. Both retailers have seen a step up in growth from the channel in the previous two years as they increase investment and respond to growing customer demand. On this latest development, a Woolworths spokesperson, commented, "Australians are increasingly embracing subscriptions across a range of different services to help save money, make budgeting easier and remove the hassle of individual fees."