Online grocery site increases supermarket competition

The way Australians shop has been infinitely changed by online sites offering cheaper deals and bulk buys, and now the company behind the successful CatchOfTheDay website has launched a grocery site for shoppers to save on the essentials.

GroceryRun was launched on Wednesday, after CatchOfTheDay identified a definite need for a site dedicated to groceries.

“CatchOfTheDay has been experimenting with selling groceries for the last 12 months,” a GroceryRun spokesperson told Food Magazine.

“For two days each month they would run a grocery shopping event, and it was amazingly successful.

“They were selling two items a second, and the shopping event would net over $1 million in revenue in the 48 hours, so they knew there was a demand because nobody was selling groceries online.

As to whether these websites are the future of grocery shopping, the spokesperson told Food Magazine they are just one of the options for consumers.

“All shoppers are looking for a better deal and the internet is providing an even playing field for retailers.

“Shoppers are smarter, they know they can get a better deal.

The most positive response for the site came from regional centres who pay high costs for a limited range in local stores.

“Because we have an $11 shipping fee anywhere in Australia and our prices are so competitive, all our regional consumers think it is just fantastic.

But GroceryRun is quick to ensure retailers and consumers that the site is just one option for getting groceries.

“We always say we’re not going to be a replacement for the major supermarket, we don’t stock perishables and our range is limited, but you do know you‘re getting the best price on what we do have to offer.

“We support people to still support their local butcher, local grocer, but on those other items, we offer them more options.

“Any kind of competition is good for the industry and business, and we are fully supportive of some friendly competition to bring prices down,” the spokesperson said.

Since its launch, GroceryRun has experienced great, with the most popular item, Finish Powerball dishwashing tablets selling out in the first day.

“It was 78 per cent cheaper than the price in supermarkets, so it sold out, but they were able to get more in quickly,” the spokesperson told Food Magazine.

“They have so many supplies, they have been building up for ages and they have established fantastic relationships with a lot of suppliers to meet the demand.”

The second most popular item was Nescafe coffee.

Image: Grocery Run



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