NewsBite

Woolies launches radical new express aisle

GROCERY shopping is about to get a whole lot easier, with Woolworths launching a new service that could kill off supermarket queues for good.

 Grocery basket full of groceries from a Woolworths supermarket in Sydney.
Grocery basket full of groceries from a Woolworths supermarket in Sydney.

YOUR grocery shopping is about to get a lot easier, with Woolworths launching a new service that could kill off supermarket queues for good.

Instead of jostling for a car space, trawling the aisles and having to line up at the check-out, shoppers can now pick up their groceries from a designated locker at the train station on the way home from work.

But there’s a catch — only shoppers who live in Sydney’s eastern suburbs will have access to the service. At least for now.

Woolworths has partnered with Sydney Trains to test the initiative at Bondi Junction station, one of the state’s busiest with about 20,000 commuters passing through it each day.

NSW Transport Minister Andrew Constance said the initiative aimed to save people time during their evening commute.

“We’re trying to get customers home quicker and avoid the mad afternoon dash to the

shops,” Mr Constance said.

“Everyone has time pressures, so we thought ‘why not help train customers save time and be able to pick up their groceries at the station on the way home?’”

The past few years have seen time-poor Australians turn to the growing number of delivery services that have sprung up to rival the supermarket chains, from Kogan Pantry to Grocery Run and Box Fresh.

The specially designed lockers come with built-in refrigeration, allowing shoppers to order chilled and frozen goods.

Orders must be placed by 11am for pick-up that evening, with a minimum spend of $30.

Commuters can now pick up their groceries at Bondi Junction train station on their way home from work. Picture: Adam Taylor
Commuters can now pick up their groceries at Bondi Junction train station on their way home from work. Picture: Adam Taylor

The commuter pick-up service, believed to be Australia’s first, is based on a similar setup on London’s underground.

Parramatta, in Sydney’s western suburbs, is earmarked for stage two of a potential national rollout of the service.

Its success will depend on whether the convenience factor is appealing enough to overcome customers’ apathy toward “click and collect” services, already on offer at the major supermarkets.

A Nielsen report last year found that just five per cent of Australian shoppers reported ordering groceries online and picking them up using a drive-through service — despite 53 per cent saying they were willing to use such a service.

But experts predicted this was likely to change rapidly, with an IbisWorld report forecasting an expansion of the online market as shoppers became “more adept” at using online stores, and retailers honed their offerings.

Delivery fees, and the need to be at home to accept deliveries from some retailers, were among the issues blamed for the slow uptake.

Woolies’ latest initiative comes as it contends with falling profits due to sales lost to competitors — chiefly Aldi, whose homebrands make it significantly cheaper than Woolworths or Coles.

The German discount chain has been increasing its share of the $88 billion grocery shopping market, having more than tripled in size in the past decade, putting a rocket under the major chains.

And while Aldi, Coles and Woolworths all offer home delivery, if Woolies’ latest move is successful, it could gain an edge on the competition.

Kate Langford, Woolworths’ general manager of digital retail, said Woolworths was exploring “new and innovative ways to serve our customers and make their shopping easier”.

“Now our customers will be able to collect their groceries at the station on their way home which is great for commuters,” Mrs Langford said.

dana.mccauley@news.com.au

Read related topics:Woolworths

Original URL: https://www.news.com.au/finance/business/retail/woolies-launches-radical-new-express-aisle/news-story/fd3b977f9d07b61168f4ed6bac1ed2fd