Home Articles CatchOfTheDay has big supermarkets on the hook

CatchOfTheDay has big supermarkets on the hook

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Australian online department store CatchOfTheDay has supermarket big kahunas firmly in its sights.

The company, which also operates leading group buying site Scoopon.com.au, recently launched its third e-commerce site GroceryRun.com.au.

The site promises average savings of up to 50 per cent on big-name grocery, cleaning, beauty, and pharmaceutical brands. While some products will save you as much as 80 per cent on the RRP.

CatchOfTheDay trialled the discounted groceries model for 12 months before launching GroceryRun. The company offered groceries as part of a two-day event each month. It sold, on average, two grocery items a second, netting more than $1 million in just 48 hours.

CatchOfTheDay co-founder Gabby Leibovich says the new segment is one of many that the company has its eye on. And the future’s looking bright for Australia’s number one online department store, with revenues for 2011-12 forecast to hit $250 million and a fourth online retail store planned to ring in the new year.

“We look to markets where we can offer significant savings and bring about real price competition and a better deal for shoppers,” Leibovich says.

“With three leading shopping sites now in operation, we have the experience and economies of scale to quickly launch new sites where we see a market opportunity.”

GroceryRun will offer its discounted goodness two days each week – Wednesday and Thursday. Two hundred major brand items will initially be on offer, while a flat $11 delivery fee applies anywhere in Australia.

According to Leibovich, the best sellers are cleaning products and personal health care items, however, small luxury items such as chocolates also hold their own.

“The success of our grocery business shows that shoppers are looking for a better deal on groceries and we believe we have a good model in place that resonates well with today’s thrifty consumer.”

CatchOfTheDay favours the time-limited model because the company believes it ensures shopper confidence, while suppliers avoid the sting of continued cut prices.

“We work with our suppliers and offer an unobtrusive and effective way for them to move stock. We buy in very large volumes, pay within 24 hours and turn stock over very quickly.” Leibovich says.

“We have very low overheads and pass the savings direct to the shoppers. It’s a winning combination.”

GroceryRun already boasts 1.4 million members, so Leibovich is quietly confident the site will make a significant impact on the industry.

“Shoppers don’t have to buy no name brands to save,” he says.

“With GroceryRun they can still buy the brands they know and trust and save 50% off their shopping bill.”

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