Catch Group’s paid membership service, which includes free shipping on certain orders for a monthly fee, now includes Kmart and Target stores. Kmart Group, which includes both the traditional retailers, acquired online only Catch Group earlier this year for $230 million in a move it said would bolster its digital and ecommerce offerings.
For $6.50 per month or $69 annually, Club Catch members can get delivery of non bulky orders over $45 at no additional charge as well as members’ deals in a model much like Amazon’s Prime membership. Catch Group claims 100,000 Australians have already used the service.
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On Friday Wesfarmers-owned Kmart Group, which includes Kmart, Target and now Catch Group, announced the membership will cover eligible orders from all three of its retailers.
The announcement was pitched at Australian shoppers looking for more convenience during the Christmas period. But Kmart Group and Australia’s other retail incumbents have been under pressure to match the convenience and logistics of American giant Amazon since it set up shop in Australia in 2017.
Amazon started slowly but has focused relentlessly on expansion and customer convenience, as it consistently does in new markets. It priced its Australian Prime membership aggressively, much less than what it charges US customers, has established three fulfilment centres in two years – the latest in Western Australia – and offered its marketplace retailers a fulfilment service.
In announcing the expansion of the Catch membership, Kmart Group managing director Ian Bailey noted the changing expectations of consumers for both price and convenience.
“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,” Bailey said.
“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. We’re going to look at ways to make shopping easier for our customers across all three businesses and that will start with this subscription offer in time for this Christmas.”