Coles expands trials of online order and pick-up scheme

Supermarket giant Coles has launched trials of an online shopping scheme which will see customers able to order their goods online and then pick them up at its chain of petrol stations.

The move comes as a number of retail behemoths, including Myer, David Jones and Harvey Norman have all begun either preparation for online stores or complete revamps.

Coles has previously allowed customers to order their goods online but the new trial, which Coles says is one of many options it is considering, would allow customers to choose their groceries and then pick them up at their earliest convenience. Groceries will be refrigerated until pick-up.

Coles calls the project “Click and Collect”, and says the plan is an attempt to boost its online sales division.

Sam Yip, senior research manager for Telsyte, says the scheme will work well if executed in the proper way, and also points out this is the type of multi-channel approach many experts are urging retailers to adopt.

“Multi-channel retail is something we can really look forward to in Australia, and it’s driven by the growth of online shopping and especially in the mobile space. Mobile commerce and mobile-related apps are going to propel this space.”

Harvey Norman recently announced it will introduce a multi-channel system as part of its online store that will allow customers to make orders online and then pick up their products at a nearby franchise.

“We’ve seen there are technologies overseas that are popular, such as barcode scanning technologies, which allow customers to scan a barcode, and then send an order to a retailer. Coles is in a great position because of this mobile technology.”

Coles says the plan expands on its existing scheme, which allowed customers in close proximity to a limited number of Coles supermarkets to pick up their goods rather than have them delivered – a move the company says has been well received.

However, the company says it is still “early days” for the scheme, and reinforces this is just a trial period and that the full project may never reach fruition.

Nevertheless, Coles general manager for online, Keith Louie, told the Australian Financial Review this morning that Click and Collect “could change the way people shop”.

“I don’t want to overstate it as this is currently a small trial, but we’re running it thanks to strong feedback from customers.”

Louie also says online sales for Coles have been growing fast – they doubled during the period from 2009-10, and believes the growth could reach double digits soon.

Yip says this is the type of reward that can come from focusing on eCommerce, but he warns businesses introducing multi-channel retail operations they need to ensure their inventory and ordering systems are up to scratch.

“It sounds great as a concept, but retailers need to work close together with mobile networks as this type of activity can increase traffic on networks.”

“Likewise, they need to work with all of the retailers’ channels, as distribution needs to be established and seamless from point to pickup, for whichever company is using it.”