Facing pressure from Amazon Prime, Target and Kmart are offering free delivery for members – but only for orders over $45

The team at Catch. Image: Supplied
  • Wesfarmers owned Kmart and Target are partnering with Catch.com.au to provide free shipping if you sign up to the Club Catch membership program.
  • In order to qualify, you have to spend more than $45 online.
  • The free delivery program begins on November 1.

Aussie retailers are clearly feeling the pinch from services like Amazon Prime.

Wesfarmers-owned companies Kmart, Target and Catch.com.au will give you free delivery on your items if you sign up to the Club Catch membership program. But you have to spend more than $45 online.

Club Catch is offered through catch.com.au and offers members discounts, weekly deals and early access to special events. It costs $6.50 a month or $69 a year, with a free trial for 30 days.

Free delivery begins on November 1, just in time for Christmas.

And the partnership looks like it’s rivalling Amazon’s membership program Amazon Prime.

Club Catch is slightly cheaper than Amazon Prime which is $6.99 a month. However, Amazon Prime also offers streaming of TV shows and movies, as well as access to games, music and e-books. And when it comes to shipping with Amazon Prime, you get free expedited delivery on local items and get eligible items sold by Amazon US shipped for free if they are over $49.

Kmart Group Managing Director Ian Bailey said customers have been increasingly looking for convenience when shopping.

“We have been listening closely to our customers and we can see across all of our businesses that the way they want to shop is evolving,” he said in a statement. “More and more of our customers are shopping online and they are looking for a better and more seamless shopping experience whenever and wherever they shop with us.”

In June 2019, Wesfarmers announced its plans to acquire Catch Group for $230 million and the acquisition was later completed in August.

“Since Wesfarmers acquired Catch.com.au and it became part of our Group, we’ve been looking for ways to leverage the collective capabilities of the Group in ways that ultimately makes the shopping experience easier and more rewarding for our customers in all three businesses,” a Kmart Group spokesperson told Business Insider Australia in an email.

While the Kmart Group spokesperson said Kmart and Target have seen growth in online sales over recent years, online still represents a small part of the business.

“Online is still a small part of the business as compared to our stores, but it is growing as a proportion of our overall sales,” the spokesperson said. “Ultimately, we need to offer great products and a great customer experience wherever our customers shop and more and more customers are shopping online.”

Kmart and Target aren’t the only Aussie retailers aiming to boost their online offerings.

In October, Bunnings announced the launch of an online marketplace called MarketLink which features a range of products which aren’t already available in store, such as kitchen appliances and home entertainment.

And speaking of entertainment, Foxtel also launched a loyalty program that rewards customers depending on how long they have been with the service.

It looks like Aussie companies are pulling out all stops to get more customers.

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