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Logistics & Fulfilment

Coles launches grocery subscription service

Coles is taking its online grocery offering a step further with the launch of a new subscription service that allows customers to make unlimited orders for a flat monthly fee.

Customers must spend over $100 in each transaction to qualify for Coles Delivery Plus, which gives the option of delivery any day of the week for $19 a month, or mid-week delivery from Tuesday through to Thursday for the lower rate of $14 per month.

Coles Online general manager Karen Donaldson said the new service is aimed at time-poor online regulars who are looking to save on delivery.

“On average, the cost of a Coles Home Delivery window is $10, depending on location, time of day and length of delivery window chosen,” Donaldson said.

“Delivery Plus will allow customers who regularly shop online to save hundreds of dollars a year and help them manage their family budget by knowing exactly how much they will pay on Coles Online delivery each month.”

The big two have been ramping up investment in online this year, in a bid to retain and gain consumers as new players like Kaufland enter the market.

In March, Coles scored an exclusive deal with the world’s leading online grocery platform, Ocado, which has previously signed lucrative deals with some of Britain’s biggest grocery retailers including Waitrose and M&S.

But Woolworths hasn’t been resting on its laurels. A recent partnership with eGrocery startup Takeoff Technologies is expected to propel its online grocery operations with the addition of compact, automated micro fulfillment centres at a number of its supermarkets.

Woolworths Group CEO said the new centres will allow the retailer to deliver “ultra convenience at a local level” and be even closer to the customer for that last mile delivery.

Woolworths is also planning to bring circular shopping to its online service through a partnership with TerraCycle’s Loop platform. By mid 2021, shoppers will be able to have products such as washing detergent, shampoo, juice or ice cream delivered to their door in reusable and refillable containers, which can be collected for cleaning and refilling after use.

In a bid to get customers onboard with Coles new subscription service, the retailer is offering the first month free, with automatic payments commencing the following month. But customers can cancel the auto-renewal of their subscription at any time.

For a limited time, Delivery Plus will also cover the fees for unlimited Same Day Deliveries.

This story originally appeared on sister site, Inside FMCG.

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