The site promises average savings of up to 50 per cent on “big name grocery, cleaning, health, beauty and pharmaceutical brands”, with some products slashed up to 80 per cent off recommended retail price (RRP).

CatchoftheDay co-founder Gabby Leibovich says the company’s move into groceries is the first of a number of new markets that the group plans to explore as part of its growth roadmap. 

With revenues for 2011/2012 forecast to top $250 million and a further fourth online shopping site planned for launch in the new year, Leibovich says they are on track to building Australia’s leading ecommerce group. 

“We look to markets where we can offer significant savings and bring about real price competition and a better deal for shoppers. With three leading shopping sites now in operation, we have the experience and economies of scale to quickly launch new sites where we see a market opportunity,” said Leibovich.

Groceryrun.com.au launches after a 12-month trial, which saw CatchoftheDay offer groceries as part of a two day monthly shopping event where the company sold on average two grocery items a second and netted over $1 million in 48 hours.

“The success of our grocery business shows that shoppers are looking for a better deal on groceries and we believe we have a good model in place that resonates well with today’s thrifty consumer,” said Leibovich.

The model sees GroceryRun open its doors for two days every week – Wednesday and Thursday – and offer the best prices in Australia on around 200 major brand items. A flat $11 shipping fee applies to deliveries anywhere in Australia.

Leibovich says the most popular items are generally cleaning products and personal health care items – the big ticket items that take a large bite out of the household budget, however small luxury items such as chocolates are also a big seller.

The time limited nature of the deals means shoppers can be confident that only the best prices are on offer, and suppliers are not being burned by continued cut-price tactics.

“We work with our suppliers and offer an unobtrusive and effective way for them to move stock. We buy in very large volumes, pay within 24 hours and turn stock over very quickly. We have very low overheads and pass the savings direct to the shoppers. It’s a winning combination,” said Leibovich.

With over 1.4 million members, Leibovich is confident that GroceryRun will carve a winning niche for itself in the online grocery space and is “looking forward to bringing some friendly competition to the market”.