Supermarket War Moves to Virtual World With Woolies Allowing Shoppers to Buy Using Mobile Phones

Woolworths has upped the ante in its ongoing reign for supremacy in Australia's supermarket war by moving the battle into the virtual world. By launching a virtual supermarket in Sydney, shoppers could buy groceries from Woolies using their mobile phones.

Woolies would display a list of its products on the walks of Town Hall station in central Sydney. Shoppers would use the Woolworths apps on their cellular phones to order groceries which the supermarket giant would deliver to their homes for a fee.

In preparation for the virtual supermarket launch, Woolies last week released an updated version of its apps which would allow direct purchases using an iPhone. By using the apps, buyers see full-sized physical display of the grocery items.

To buy an item, shoppers just need to scan the product barcodes on the Woolies' wall in the Town Hall station and then pay for the products online. The virtual supermarket is located at the concourse level of the Town Hall station between the Park Street and George Street exits.

The Town Hall Station would feature over 120 Woolworths popular products, including fresh food, which was the last battleground between Woolies and main rival Coles which brought down prices of selected vegetables and fruits up to 50 per cent.

Tjeerd Jergen, Woolworths' director of supermarkets, said the Town Hall virtual supermarket is on a pilot basis for one week. Based on customer feedback, the grocery giant would help determine how it could develop and expand the concept into the future. He said the virtual supermarket wall is just one idea that Woolworths is working on to make the lives of consumer easier.

Previous attempts include lowering the prices of milk, bread and detergent which Coles matched with similar deep discounts. They then moved the war to offers of sustainable, fresh fish.

The concept of a virtual supermarket was initially tried by grocer giant Tesco in South Korea. The idea was a brainchild of creative agency M&C Saatchi and media agency Mitchells.

Among the early comments made by consumers about the idea of a virtual supermarket is that it may develop more couch shoppers in a nation already struggling with overweight residents.

"You could also use your legs occasionally and walk to the shops and carry the groceries home instead of being a phone zombie," blogger Shambolic wrote on marketing Web site mUmBRELLA.