Woolies takes on Amazon

Woolworths is rolling out grocery collection for online orders across its supermarkets nationwide.

Woolworths is tackling the threat posed by global behemoth Amazon head on, rolling out grocery collection for online orders across its supermarkets nationwide.

In just a month, the retailer has increased the number of supermarkets offering the pick-up service from 300 to 970, with 4500 personal shoppers picking and packing groceries in stores each day.

The move is part of CEO Brad Banducci’s WooliesX strategy to provide a more connected customer experience and sends a message to Amazon that it’s more than prepared to defend its turf ahead of the online giant making its entry into the local market.

“Woolworths increasing its online offering is a big positive given the trend that consumers are increasingly migrating online in other categories. So being on the front foot, that’s a positive for the retailer,” Morningstar analyst Johannes Faul told The Australian.

Citigroup last week put out a note speculating that Amazon could launch its Australian site as early as next month, which could prove disastrous for domestic retailers in the run-up to Christmas.

“Supplier feedback across many categories suggests a pre-Christmas Amazon launch date is likely,” Citi retail analyst Brian Raymond said.

“Launch timing remains uncertain and subject to website and logistics testing, but we would expect a formal launch to occur sometime in October 2017, ahead of Black Friday on November 24.”

Amazon’s looming arrival hasn’t only got Woolworths fired up. US retail giant Costco last week announced plans to open its 10th Australian store in Brisbane next year, while convenience store chain 7-Eleven is also making a concerted push into the fresh food category.

Amazon has yet to confirm the timing of when it will launch its grocery and fresh food home delivery service, AmazonFresh, here in Australia. Indeed, Mr Faul believes it’s more likely to be part of its medium-term plans rather than an imminent prospect. But Woolworths ramping up its online offering shows it’s not taking any chances.

Its pick-up service, also known as click and collect, will be available seven days a week and free for orders over $30. A number of pick-up options are available to customers at select locations, including drive through, remote lockers and specific parking bays where groceries are delivered to the car. Groceries ordered before 11am can be picked up same day after 4pm, while those ordered by 11pm can be picked up the next day after 11am.

Shoppers can keep track of their order on Woolworths’ app, which will tell them when their order is ready. The app will also notify staff when customers are approaching.

“From remote regional towns with only one Woolworths supermarket to major metro areas where customers have multiple pick-up location choices, customers will be able to get more time back in their day as we do their shopping for them,” Woolworths head of online operations, Lisia Roth, said.