The 'Woolworths: you collect or we deliver' service will enable customers to have products delivered to a specific store, as well as direct to their home. Orders can be placed either in-store or via the web site.
The service will cover 245,000 of the retailer's 250,000-strong product range.
The group hopes that the service will drive footfall in stores from its web site, bringing increases in revenue from convenience purchases such as confectionary and newspapers.
It is also expected to increase supply chain efficiency, as more orders will be fulfilled via standard dispatches to stores, rather than home delivery.
The move follows research that found customers would prefer to pick up goods in stores than wait at home for a delivery or collect it from the Post office.
New in-store point-of-sale suites will be rolled-out to all 826 Woolworths stores over the next three months.
In addition, special kiosks, allowing customers to browse, order and pay for goods themselves, are being rolled-out to 100 locations in time for the busy Christmas period.
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