Woolies are playing it smart. They are not convinced that a refrigerated locker delivery concept is a sound model at this stage. They will adopt a watch and observe approach to what Coles are doing while testing the model in refrigerated vans that will arrive at set locations same time everyday. Parcels will be distributed to customers by drivers. Although this is more expensive short term and a little clunkie,if the numbers don't stack it can be dismantled very easily. Very clever in my view. This concept does not hold a first to market advantage. Customers will use the facility closest to home so a wait and see ( let Coles spend their money and pioneer the concept)does not put them at a material disadvantage. The bad news for TZ is in the event it is a resounding success Woolies are unlikely to use TZ due to a conflict of interest of sharing the same software systems as their fierce competitor.(confidentiality concerns as each company modifies its systems for market advantage) Of course this may be wrong but I wouldn't be factoring Woolies at this stage.Bonus at best.
TZL Price at posting:
32.1¢ Sentiment: None Disclosure: Not Held
