Woolworths Group Ltd (ASX: WOW) has soft-launched a new business, to sell groceries to other companies.
The company kicked off its ‘Woolworths at Work’ business on Tuesday, without any announcement to the ASX.
Woolworths at Work general manager Jarad Nass said the new arm would make it easier for businesses across Australia to purchase food and essentials on a monthly invoice cycle.
“It includes their own dedicated website and features built specifically for their needs,” he wrote on a blog post.
“Our new digital platform allows for multiple shoppers and delivery locations. All your organisation’s spend is captured in your Work Account in real time, which means no more company credit cards or tedious reimbursements.”
Nass said buy now, pay later supplier Openpay Group Ltd (ASX: OPY) would facilitate a line of credit to corporate customers.
How Woolworths at Work fits into the family
The launch of the new business comes after Woolworths last month bought a 65% stake in PFD Food Services.
PFD is the number 2 player in the B2B food service sector, supplying hospitality businesses like pubs, restaurants, cafes and convenience stores.
The Woolworths at Work venture will target non-hospitality clients such as hospitals, childcare centres and white-collar corporates.
The online shopping experience sounds similar to the existing consumer-facing website.
“It’s supported by our nationwide delivery options, including free next day delivery for orders over $99 and Delivery Now, which sees your order picked, packed and delivered within two hours,” Nass said.
“[It’s] an extension of our existing online grocery business.”
Woolworths at Work will have more than 10,000 items of groceries, stationery and cleaning products available.
The supermarket is currently calling for expressions of interest in its new B2B store.
Woolworths had previously earmarked business customers as a new source of income, reportedly setting a target of $1 billion in revenue by 2024.
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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