Australia’s $90 billion grocery market has fiercer competition than ever.

Coles and Woolies are locked in a price war, and with the 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.

For the first time in the country, Woolworths customers will be able to combine their online shopping with their supermarket run, with 500 Australia Post 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.

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