“In 2021, the minimum spend for Delivery Unlimited was $100; it was lowered to $50 in October 2021. We believe we now have the right amount that better reflects customer shopping behaviour and our own costs to continue the offering.”

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Woolworths said it was collecting feedback from shoppers who were affected by the move to limit monthly discounts to in-store shopping.

“We are currently in the process of collating customer feedback, and we will be in contact with individual customers who have expressed concern to offer alternative ways to continue to shop with us.”

The group said concerned customers could call 1300 10 1234 and select option 1.

E-commerce and home delivery offers have become increasingly important to the major supermarkets, with the grocery sector seeing an explosion in online sales during the pandemic years. But online sales growth has slowed as shoppers emerged from lockdowns and started shopping more regularly in store again.

Woolworths has been investing in refining its home delivery service over the past year, and bought the failed rapid grocery delivery service Milkrun this month. 

The company has rebranded its “Metro60” delivery business as Milkrun, and will continue to offer a range of 10,000 grocery items to certain metro areas in less than 60 minutes.

“We sell a 10,000-strong range of products from brands you love with thousands of weekly specials and exclusive Milkrun deals,” the company said on its refreshed website this week.

“We add a small $5 delivery fee to ensure we can continue to provide the best, fastest possible experience to our customers.”