Aldi price warning as supermarket finally offers online delivery: 'Don't assume'

Yahoo

3 days ago

Aldi is heating up its fight against Coles and Woolworths by announcing it will offer online grocery delivery through a partnership with DoorDash. The German supermarket chain has launched the trial in Canberra today and plans to roll out the service across the country in the coming months.
More than 1,800 products, including fresh fruit and vegetables, meat, seafood, dairy, bread and household essentials, will be available for delivery. Aldi has confirmed there will be 'some price variances' for customers shopping via the app compared to in-store, plus DoorDash will apply delivery and service fees.
Finder money expert Angus Kidman told Yahoo Finance it made sense for Aldi to partner with a third-party delivery service such as DoorDash, given it has long said it would not be expanding into online shopping itself as it would undercut its position as the cheapest supermarket.
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'It doesn't want the full-blown overheads involved with setting up broad-scale delivery as Coles or Woolworths have,' Kidman said.
'Using DoorDash means no additional labour costs, while still letting it compete with the big two for customers who do want a delivery option. As well, Aldi has had a partnership with DoorDash in the US since 2023.'
Aldi Australia chief commercial officer Jordan Lack said Aldi's mission has been to deliver 'high quality groceries at the lowest prices for Australian households' since it entered the Australian market back in 2001.
'Through our partnership with DoorDash, we can now literally deliver on this mission directly to Aussies' doorsteps in an exciting new way that we know our customers have been seeking,' Lack said.Aldi has consistently been named the cheapest supermarket by CHOICE's government-funded supermarket price survey.
For the March report, a basket of items cost $55.35 at Aldi, $58.92 at Woolworths, $59.22 at Coles and $69.74 at IGA, excluding specials.
The average household has reported spending $233 per week on groceries in June, according to Finder, which was up 27 per cent from $184 per week in June last year.
Aldi products on DoorDash will cost more than those in-store and be subject to service and delivery fees, but the supermarket claimed its base pricing meant it would still be the most affordable option for online supermarket shoppers.
'It is our intention to make sure that we are the most affordable alternative whether that is bricks and mortar or buying online,' Aldi said.
DoorDash delivery and service fees are standardised across all grocers, 'no matter which grocery supermarket you are buying through".
Kidman told Yahoo Finance shoppers shouldn't automatically assume Aldi offers the best price when online shopping.
He noted Woolworths and Coles did not mark up pricing on items delivered directly from the supermarket, but they did come with longer turnaround times and delivery fees.
'Would an Aldi delivered shop be cheaper than one from Woolworths? For store-brand goods, all three supermarkets aggressively price match, with Aldi sometimes coming in a few cents cheaper,' Kidman said.
'If the delivery fee was low enough, it might come in cheaper, but I wouldn't automatically assume that.
'One challenge Aldi faces is substitutions. If an item isn't in stock, it almost never has an alternative brand, so some shoppers will be disappointed.'
Coles and Woolworths also have partnerships with DoorDash and UberEats for on-demand deliveries.
Coles previously confirmed it adjusted the price of products available through the delivery platforms to reflect the convenience of the services and said this was in line with other retailers.
Online grocery accounts for nearly 11 per cent of the overall grocery market, according to E&P analyst Phillip Kimber.
Online sales for Woolworths and Coles rose 20 per cent and 22.6 per cent year-on-year, respectively.