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Coles offers free delivery in attempt to lure Woolworths’ customers

Coles' new offer sees it take aim at Woolworths' online business. Image: Getty

Coles Online has announced a new plan to draw customers to its online business, offering free home delivery.

The offer, pitched as a thank you to customers for a 30 per cent increase in sales over the 2019 financial year, applies to those who spend more than $100 in one transaction, and who place an order before 30 September 2019.

“As the weather warms up, we know customers want to get out and enjoy themselves, so we are helping do the grocery shopping for them by offering big savings and great deals when they shop online,” Coles Online general manager Karen Donaldson said.

“We now have more delivery slots available for customers to choose from and shorter delivery windows which means they can plan to spend more of their day out of the house. We’ve also simplified our delivery fees to make online grocery shopping more convenient for customers, who have busy lives and are looking for ways to save time and money.”

Coles Online saw orders increase 30 per cent in the last financial year, bringing sales to more than $1.1 billion.

Click&Collect customers will also save $10 on their groceries when they spend more than $150 and place their order prior to 10 October.

The promotion comes just days after it was revealed Woolworths shoppers could save 25 per cent off their groceries by trialling the supermarket giant’s Scan&Go system.

The system sees shoppers scan items on their phone and pay through the app, rather than head to the check-out.

Coles saw an 8.1 per cent fall in full-year earnings this financial year, it revealed in August, following its demerger from Wesfarmers last November.

Retail earnings fell to $1.32 billion as falls in fuel and convenience bit, along with the costs of restructuring after it demerged.

The company posted a statutory profit of $1.43 billion, also a fall of 9.1 per cent.

"It has been a year of substantial change for Coles following the successful demerger and ASX listing," chief executive Steven Cain said.

"Consumer behaviours are changing faster than ever, we are heading into the most competitive period in Coles' history, and there are significant industry-wide cost headwinds."

Woolworths, conversely, posted a full year profit of $1.75 billion, reflecting a lift of 7.2 per cent.

Woolworths chief executive Brad Banducci said the giant had recovered from plastic bag-related challenges, and that despite an uncertain consumer environment and other cost pressures, Woolworths was "well placed to respond to these challenges".

With AAP.

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