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Kogan Pantry takes on Coles and Woolworths with online groceries

Kogan is branching out from tech and eyeing off your kitchen with the launch of Kogan Pantry -- a grocery delivery service taking on Coles and Woolworths by promising discounts of up to 80 percent.

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Kogan has launched grocery delivery with Kogan Pantry. Kogan

Online retailer Kogan is expanding its empire and pushing into the grocery market with the launch of Kogan Pantry -- a business that it says "challenges the supermarket duopoly head on".

In a similar vein to daily deals sites and bricks and mortar retailers such as Costco, Kogan Pantry offers discounted prices on bulk goods, such as 18-packs of batteries or 72-packs of razor blades, as well as groceries, pet food, cleaning products and toiletries.

The website doesn't sell fresh or perishable food, opting instead for long-life items such as pasta, biscuits and cup noodles. But Kogan has also included some big names in amongst the lower-priced fare, with the store selling brands such as Pringles, Heinz, Dove and Gillette.

In total, there are some 600 products at launch, with Kogan promising discounts of up to 80 percent as well as AU$9.99 capped shipping on selected items.

According to Kogan, it's "cutting out the middlemen to ensure supply-chain efficiency and the absolute lowest prices possible" to compete with big retailers. It says that on a "sample basket of 20 popular items", Kogan Pantry offers savings of more than 50 percent compared to Coles and Woolies.

David Shafer, executive director of Kogan.com, continued this theme of taking on the big players.

"For far too long Australia has had to put up with a supermarket duopoly," he said. "While Coles and Woolies certainly offer a fantastic selection of products ... the Aussie duopoly also has some of the highest profit margins of any supermarkets in the world."

With 600 products on its digital shelves, Kogan still has a way to go to beat rival online offerings from Coles and Woolworths, which both offer a far wider selection of products, including fresh fruit and vegetables and bakery items.

However, the move certainly positions the online retailer as a rising challenger in the grocery space, and puts it a step ahead of German-based rival Aldi, which only sells liquor online, and Costco, which has a limited footprint of 7 big-box stores across Australia, all of which require a membership to shop inside.