Retail giants scrap delivery fees in response to fuel crisis

Retail giants scrap delivery fees in response to fuel crisis

One of Australia's largest retail groups will pause fees on all deliveries from stores including Bunnings and Kmart in a bid to ease the fuel price pressure on customers.

Wesfarmers said it will be offering no-fee deliveries with free six-month OnePass membership trials to all Australians, which normally costs users $4 per month or $40 per year.

Delivery fees at Wesfarmers brands range between $9 and $12 for a standard parcel.

READ MORE:  'Offensive and demeaning': Big challenge behind Pauline Hanson's next move

At most Wesfarmers-owned stores, delivery fees are waived for orders above $65. 

Under the free trial, there is no minimum spend for free deliveries.

It will be offered on any product ordered online from Bunnings Warehouse, Kmart, Target, Officeworks and Priceline Pharmacy.

Existing members will be offered $20 off their next OnePass membership renewal.

Sky-high petrol prices spurred Wesfarmers bosses to halt delivery fees until September.

It is hoped customers will instead order products online instead of getting behind the wheel to pick up their goods in-store.

Bunnings Managing Director Michael Schneider said the free delivery scheme aims to ease the spiralling financial pressure on everyday Australians.

"We know that every dollar counts right now. Being able to shop online and have your order delivered for free makes a real difference to the weekly household budget," he said.

The offer is available to anyone who signs up between today and May 14.

READ MORE: 'Won at capitalism': Family saves $10k by eating from supermarket dumpsters

Wesfarmers has weathered a tough post-war dip in consumer spending, with share prices taking a sharp nose dive since the US-led campaign against Iran began in late February.

Share prices for the group have taken a tumble from a four-month high of $89.26 in mid-February to $75.36 yesterday.

This may have something to do with the Reserve Bank of Australia (RBA)'s double rate hike blow, with homeowners spending significantly less on renovation material at Bunnings or homeware at Kmart or Target.

READ MORE: 'I wish I could charge $5': New grim reality for Aussie business ownersAFR Wesfarmers CEO Rob Scott at the AGM in Perth. 30 Oct, 2025  Photo: Trevor Collens

Wesfarmers' announcement comes as the Australian government spent $20 million rolling out a national fuel-saving campaign urging motorists to reduce their driving to ease supply issues.

The new TV ad campaign, dubbed "Every little bit helps", kicked off this week, encourages Australians to use their car less, drive smoothly to avoid excessive fuel use, carry less weight in the car and to walk or take the train or bus instead of driving.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.