A new surcharge is being criticised by Woolworths shoppers just days after the fee was introduced. From February, customers who schedule a pick-up or delivery on Sundays and public holidays will be hit with an extra $2 charge, the company told Yahoo News Australia.
The retailer argues the new Sunday fee — set to be the first among Australia’s major supermarkets — is necessary to help absorb costs associated with “picking, packing and delivering” orders on a day that is more expensive than other parts of the week. But shoppers aren’t buying it.
The new surcharge riled up Aussies online this weekend after they were slapped with the $2 fee while trying to place an order.
While some admitted they “knew it was only a matter of time”, it didn’t make the extra money coming out of their bank account any less painful.
One woman said she “didn’t know why” her total was higher than usual until she received an alert while trying to pay for her click and collect order.
The disabled customer said the new fee wouldn’t have fazed her as much a year ago, but her physical abilities and income have since declined.
“Woolworths makes significant profits all the time, and while this might only be $2, the amount of people who can’t physically get into store will take this as a big hit,” she argued.
Arranging a delivery or pick-up from Woolworths on a Sunday or public holiday will now cost you an extra $2. Source: Facebook/David Treloar
Others agreed, and described the move a “joke” and “pathetic”.
“I’m sure a profitable business like Woolworths can afford it without the surcharge, but it is just another cost that everyday Aussies have to take on,” another shopper said.
Woolies customer ditches supermarket chain over ‘greed’
A former Woolies customer said the surcharge had prompted them to ditch the supermarket chain for good.
“I cancelled everything, including insurance with Woolies. I also emailed and told them exactly why they have lost me. It is corporate greed and nothing more,” they explained.
Historically, major supermarkets have absorbed the cost of staff penalty rates into their overall margins.
By passing this labour cost directly to the consumer, Woolworths is adopting a pricing model more commonly seen in cafés and restaurants.
The timing is particularly sensitive given the ongoing scrutiny of supermarket pricing and cost-of-living pressures in Australia.
Woolworths claims most online customers won’t be impacted by the change.
Historically, major supermarkets have absorbed the cost of staff penalty rates into their overall margins. Source: Woolworths Group
Woolworths’ new charge may anger shoppers, expert says
In an interview with Yahoo News last month, Professor Nitika Garg, consumer behaviour researcher at UNSW, said the move may anger some sections of the public, like shift workers.
“Consumers are generally more forgiving of small cafés and local businesses with surcharges because they assume margins are tight,” she said.
Related: Woolworths, Coles, Aldi customers warned over mistake costing Aussies 40 per cent more
“Retailers are trying to get an extra margin from consumers for whom convenience outweighs the cost, while expecting more price-sensitive shoppers to adjust their behaviour.
“The danger for big corporations like Woolworths is that consumers may feel they’re already making millions in profits and are still passing costs on.”
Consumer Behaviour Researcher Professor Nitika Garg. Source: UNSW
Coles not implementing a Sunday surcharge
Woolworths’ latest financial results show the company made an underlying net profit after tax of around $1.39 billion in the last financial year.
Coles confirmed to Yahoo it wouldn’t be implementing any such surcharge.
Given that, Woolworths may have given its competitor a leg up, Professor Garg said.
“The people most likely to mind are budget-conscious households who organise deliveries on weekends because they’re home,” she said.
Garg suspects that most people won’t be deterred by this fee, but they will notice.
A Woolworths spokesperson highlighted the ongoing expansion of online shopping options, including over 11 million extra delivery and pick-up slots added during the past year.
They said the charge will help keep their e-commerce offering sustainable while continuing to invest in customer convenience.
Do you have a story tip? Email: newsroomau@yahoonews.com.
You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
