Could this new player be the end of Coles, Woolworths, and ALDI’s reign?

Australia’s supermarket giants—Coles, Woolworths, and ALDI—could soon face their biggest challenge yet. A new competitor is entering the market with a bold retail strategy that promises unbeatable deals.

This new player’s game-changing approach could potentially revolutionise the landscape dominated by the country’s major retail chains.

Costco, the American wholesale giant known for its bulk buys and membership-exclusive access, has announced a partnership with DoorDash, a food delivery service, to offer home deliveries to non-members.

This strategic alliance is set to make waves in the industry, offering the convenience of online shopping without the need for a paid Costco membership.

For busy locals like Kimberly Caruso, a mother juggling the demands of family life, this service could be a lifesaver: ‘I don’t find the time to shop, it’s just wherever I can fit it in between pick-ups, drop-offs.’

The prospect of being able to order in bulk, especially for essentials like school lunches, without the hassle of a store visit, is a welcome relief. She says, ‘I think it’s just going to be a game changer for everyone.’

The process is straightforward: shoppers can log into the DoorDash app, browse Costco’s selection, and have items delivered to their doorstep on the same day, depending on the order time.

It’s a familiar system for those who have used supermarket delivery services from Woolworths and Coles, but now with the added benefit of Costco’s bulk offerings.

However, this convenience comes at a cost. While specific fees weren’t disclosed by Costco, delivery charges and service fees will apply. These fees will vary based on factors such as delivery distance and order size, as reported by Yahoo Finance.

For non-members, prices will be slightly higher than in-store to account for the lack of membership.

Initially, the service will focus on standard groceries, including fresh produce, meats, and household essentials. But, Costco hasn’t ruled out expanding the range to include their wider array of products.

Costco is offering discounts to both new customers and existing members.

The service is currently available to residents of Sydney, Melbourne, Perth, Adelaide, and Brisbane who live within an hour’s drive of a Costco warehouse.

To sweeten the deal, new customers spending over $150 will receive a $20 discount on their first order. Costco members aren’t left out either; they’ll have access to exclusive deals when shopping through the DoorDash app.

Simon Rossi, DoorDash vice president, sees this partnership as a ‘timely’ response to the growing challenges of time constraints and rising living costs faced by Australians.

‘This partnership provides both convenience in being able to sit at home and order, and great Costco products at affordable prices,’ he said.

Costco’s reputation for low prices has been a drawcard for many, despite the $65 annual membership fee and limited store locations. Consumer advocacy group CHOICE has even likened shopping at Costco to experiencing ‘ALDI Special Buys on steroids,’ with the potential for significant savings on a wide range of products.

However, CHOICE reminds shoppers, ‘Don’t assume everything is cheaper at Costco—some things are and some things aren’t—that’s how they get you.’

The group recommends considering whether you’ll be able to consume bulk-sized items before their expiration and to take advantage of the long shelf life of certain products.

Price-wise, in a comparison of 44 items, Costco came out cheaper than Woolworths and Coles 33 times, with some savings being marginal. Additionally, Costco’s petrol stations have been found to offer fuel at up to 30 cents less per litre than nearby competitors.

This bold move by Costco, facilitated by DoorDash, could be the shake-up needed to give shoppers more choice and convenience in their shopping habits.

As the supermarket wars heat up, do you think the traditional giants need to respond to keep their hold on the market? Will you be taking advantage of Costco’s new delivery service?

We at YourLifeChoices are curious to hear from our readers. Share your thoughts and experiences in the comments below.

Also read: Woolworths and Coles’ brand value plummets by $4.1 billion–here’s why

Floralyn Teodoro
Floralyn Teodoro
Floralyn covers different topics such as health, lifestyle, and home improvement, among many others. She is also passionate about travel and mindful living.

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