Coles Increases Online Checkout Costs with New Bagging Fee
Coles has implemented a price increase for online shoppers, quietly raising the cost of paper bags, effective from last Monday. This adjustment means that customers will now pay an additional $0.50 at checkout due to a revised "bagging fee."
A spokesperson from Coles confirmed to Yahoo News that the new bagging fee for online orders has gone up from $1.50 to $2.00. This updated charge is reflected at the checkout stage before customers finalize their orders.
Notably, it has been over seven years since Coles last adjusted its online bagging fee. Currently, online sales account for 13.1% of the supermarket’s overall business, encompassing both Click & Collect and home delivery options, including purchases made through Uber Eats. To avoid this new fee, customers can opt for certain bagless delivery methods when ordering online.
Rising Supplier Costs Prompt Fee Changes
The adjustment in fees coincides with Coles’ recent announcement of rising supplier costs, particularly in areas such as fuel, freight, and packaging. Chief Executive Leah Weckert indicated the possibility of absorbing some increased costs, yet acknowledged that these expenses impact customer spending, particularly as fuel prices rise.
In the company’s financial report, Coles revealed an impressive sales figure of $9.8 billion for the three months ending in March, despite the prevalent economic pressures.
Legal Setbacks for Coles
In an unrelated development, Coles faced scrutiny from the Federal Court for misleading advertising practices. The court ruled that the supermarket had engaged in deceptive pricing tactics through its Down Down campaign, which allegedly presented false discount claims. Judge Michael O’Bryan ruled in favour of the Australian Competition and Consumer Commission (ACCC) in this case, suggesting that Coles may face class-action compensation that could reach up to $1,300 for affected shoppers.
With these changes and legal challenges, Coles is navigating a complex economic landscape while continuing to evaluate its service offerings.
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