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MAKING NEWS

Mon, 07 September 2009
Woolies online shopping ramps up in Queensland
September 7th 2009

WOOLWORTHS is stepping up its Australian online grocery presence with plans to roll out the service in Queensland this week, with Perth and Adelaide likely to follow.

Online grocery shopping, first offered to Sydney customers in limited form in early 1992, will be available to Gold Coast residents through woolworths.com.au from Thursday. Deliveries begin on Tuesday, September 15.

Brisbane is expected to follow soon after, but the company is yet to confirm the date.

Woolworths initially announced a Queensland online launch date for the end of last year, but Queensland regional manager Keith Vickery said a change in the company's online business practices was partly behind the delay.

Online customers will receive goods chosen from their local supermarket rather than a distribution centre, which the company believes will offer fresher lines of stock which is turned over more quickly.

The move by Woolworths follows in the wake of a more aggressive expansion online by Coles, which has serviced Brisbane internet customers since October last year.

Coles recently launched online shopping in Adelaide and plans to follow with Perth.

Gold Coast consumers using the new Woolworths service will be offered an introductory special of free delivery for a limited period if they choose a six-hour delivery window.

Permanent delivery costs will be less than those of Coles, with a fee of $5 for a six-hour delivery window, four hours $9 and two hours $13. Coles currently advertises delivery fees of between $9 and $15.

A spokesman for Woolworths said delivery would also be made to the kitchen, rather than the front door. The company also believes it will offer four times as many specials online as rival Coles.

A Woolworths spokesman said online customers were charged a premium of about 5 per cent above prices in the supermarket and could choose from 18,000 product lines.

"It's basically the full food range, but general merchandise will be around half that of the stores," he said.

Woolworths began its online grocery service in its current form in late 1997. It currently also services Melbourne, Canberra, Sydney and Newcastle.

A Brisbane-based company, FoodDirect, has been selling groceries online to southeast Queensland consumers for the past 10 years.

SOURCE: news.com

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