Grocery delivery subscriptions: Savvy shopping or supermarket swindling?

Transformation in consumer habits triggered by the pandemic marked a persistent shift towards online grocery shopping. With a click, the weekly shop is done, dodging the physical strain and time consumption that traditional store visits command.

It's particularly beneficial for those who are juggling work and family commitments, people living with disabilities, and senior Aussies who value comfort and accessibility.

However, are these programs ticking off all the right boxes for savvy shoppers, or are they cleverly disguised traps in a cash-grab scheme?


Australian supermarket giants, Coles and Woolworths, are vying for the hearts and digital shopping carts of consumers through their grocery delivery subscription services, Coles Plus and Woolworths Unlimited, respectively.

Coles Plus offers a suite of perks for a $19 monthly fee: free and same-day delivery for orders over $50, an enhanced Flybuys bonanza, and zero pick-up costs on rapid Click and Collect orders.

Pour yourself a glass because there's also a monthly freebie thrown in from Liquorland with the requisite spend.


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Coles and Woolworths offer their respective delivery subscription services to address customers’ demand for convenience. Credits: Shutterstock


Meanwhile, Woolworths counters with the Delivery Unlimited service, priced slightly lower at $15 monthly or a lump sum of $119 annually.

Benefits include free delivery for spends over $75, augmented rewards points, discounted expedited deliveries, and additional savings on the Everyday Market orders.


Sounds appealing, right?

However, the catch lies in the fine print and your shopping habits.

If your cart often crosses the free delivery threshold without the subscription, then you're parting with your dollars for no extra gain.

On the flip side, the frequent shopper, ordering multiple times within a week, may find solace and savings in paying the subscription fee.


Independent analysts, like Compare the Market's Chris Ford, said, ‘Before signing up to any program, we’d encourage Australians to look past the bells and whistles, do their research, and ensure that they’re truly getting the most bang for their buck—especially if they’re forking out money to join membership programs.’

‘In addition to paying for your membership, you may need to meet certain conditions to reap the benefits and, unless they match your circumstances, it may not be worth it.’

According to CHOICE expert Peter Zaluzany, investing time in analysing the figures could lead to potential savings through a subscription.

‘You may only have to pay a few dollars per month if you have someone to split the fee with, like a partner or housemate,’ he said.

You might also want to compare the prices of both supermarkets by entering your usual list of items into their respective delivery platforms to determine which one offers better value while you’re at it.


Ford noted that prominent retailers had introduced several paid membership reward programs, offering Australians discounts and perks.

‘The catch here is you may need to spend a certain amount, so it may not be worthwhile if you do smaller shops or shop online infrequently,’ he explained.

‘If you’re paying for a membership, be aware that it effectively could lock you into shopping at one store. You may miss out on greater savings by not shopping where the discounts are.’

The conversation amongst consumers on social platforms like Markdown Addicts Australia sheds more light on this topic, with Woolworths often emerging as the favoured platform.

‘I think Coles Plus is c***,’ one wrote. ‘Wow, you get twice Flybuys Points, but nothing else. The major perk they offer is getting free Express Click and Collect instead of paying $5 for it.’

‘Unless you’re grocery shopping big time at Coles each week, I wouldn’t bother with Coles Plus. I get much more out of my Everyday Rewards Extra than I did from my Coles trial,’ they added.

‘I find Woolworths so much better. I can get same-day delivery a few hours after I place the order. Minimum spend is $50, I think. I’ve always been a Coles shopper, but this has changed my mind,’ another commented.

‘Just pick the six-hour slots for $2-$3 on certain days, and no need to pay for Coles Plus. Apart from deliveries, that’s really it. The double Flybuys is only double standard points, so not worth much,’ a third argued.


However, others said they prefer Coles’ subscription over Woolies’.

‘Despite a few hiccups, overall, Coles has been much better,’ one shopper said.

‘The food quality is much improved (particularly their meats/seafood), hardly ever have missing items (in fact, it’s very rare), and we seem to be accruing more Flybys dollars than we ever did with Everyday Rewards.’

‘Not going back to Woolies anytime soon,’ they added.


Remember, knowledge is a key ingredient in the recipe for financial prudence.

Take time to do due diligence to discern if Coles Plus or Woolworths Unlimited equates to unlimited value or dollar-draining duds.

It’s also worth looking at offers outside of the supermarket duo.

Check out this in-depth comparison of the three paid memberships from Coles, Woolworths, and an emerging player in the Australian retail industry.

Key Takeaways
  • Coles and Woolworths offer subscription delivery models for online grocery shopping, responding to customers' demand for convenience.
  • The subscription schemes come with their perks, such as bonus reward points and free or discounted delivery, but their value depends on how often and how much customers shop.
  • Experts advised shoppers to assess whether the cost of the subscription will actually save them money based on their shopping habits.
  • Customer feedback on the subscription models was mixed, with some preferring Woolworths for its perceived better benefits, while others are satisfied with the Coles subscription and its associated rewards.

Are you a Coles Plus devotee or a Woolworths Unlimited warrior? Have you found a better way to minimise your grocery bill while maximising convenience? Share your insights and learn from each other in the comments below.
 
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We use the Woolworths delivery, and although a few times they have made a mistake on the order, though very minimal, the ease of getting a refund back for the error is so easy and no fuss at all. Plus the brand of coffee we get never seems to be in stock at Coles, so we stick to Woolworths. Am happy with their performance.
 
How odd. Back in the bad old days in the UK when the Royal Mail charged 2 1/2d for an ordinary letter posted at John O' Groats and which would arrive in one's letter box in Portsmouth in either the next morning's or afternoon's post, the local butcher, greengrocer and even the laundry would organise deliveries according to what one had written in their order book. As part of the delivery service the delivery person would pick up next week's order .

Seems that Colesworth have reinvented the wheel and charges a subscription fee for the service.
 
In the past I have signed up with both these supermarkets on separate occasions and found that it didn't suit me when they increased their original fees. I can order and go and get free click and collect whenever I want for no fees at all, Definitely another way for these supermarkets to rip us off.
 
I have Delivery unlimited with Woolies, however I now shop between Coles and Woolies. I just select the $2 delivery slot at Coles. Woolworths is good if I have a big shop and have to spend $75 but it is a bit of a stretch sometimes so I go with Coles minimum spend of $50. It is swings and roundabouts for me.
 

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