Woolworths targets online shoppers in partnership with Australia Post

THE battle for Australia’s $90 billion grocery market is fiercer than ever. Woolworths is betting on a new partnership to help give it an edge.

Australia Post’s 24/7 parcel lockers are coming to a Woolworths near you.

THE battle for Australia’s $90 billion grocery market is fiercer than ever.

With Coles and Woolworths locked in a price war — under pressure from German discounter Aldi — and Amazon Fresh on its way Down Under, the major supermarkets have pulled out every trick in the book to win over shoppers.

Now, after revamping its private label offering and controversially tinkering with its loyalty program, Woolworths has a new partnership it hopes will give it an edge.

In an Australian first, customers will be able to combine their online shopping with their supermarket run, with 500 Australia Post 24/7 parcel lockers to be installed at Woolworths stores around the country.

“This landmark partnership with Woolworths will provide our customers with more choice and convenience for parcel delivery than ever before,” Australia Post boss Ahmed Fahour said, announcing the venture on Tuesday.

“Australian shoppers spent $20 billion online last year and this Christmas is expected to be the busiest ever for online shopping — with more than 60 per cent of all Australians expected to buy online.”

Woolworths chief executive Brad Banducci said the lockers would complement the retailer’s click-and-collect service.

“We know our customers are busier than ever and are looking for greater convenience in everything they do,” Mr Banducci said.

“We’ve seen strong year-on-year growth of our customers shopping with us online, with many choosing the convenience of our click-and-collect service to pick up their shopping from our stores on their way home.

“This partnership with Australia Post now allows them to conveniently pick up their parcel when they do their grocery shopping in-store or pick up their online order — giving them back important time in the day.”

Parcel lockers are now available at five Woolworths stores in Melbourne — Brunswick, Carnegie, Glen Huntly, Mentone and Northcote — in a pilot program to be rolled out nationally by the end of the year, with the parcel locker network to be more than tripled to 750 locations by 2021.

It comes as Amazon Fresh prepares to enter Australia, with commentators expecting the global retail giant to make a move in the next two years with a combined online and bricks-and-mortar offering.

Shoppers can have their items delivered to parcel lockers by selecting them as the address location before checking out.

A pin code is sent via text to access the locker, and items must be picked up within 24 hours.

Australia Post’s existing 250 parcel lockers are located at post offices, conveniences stores, shopping centres and service stations.

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