Move over Woolies and Coles, Amazon Fresh wants in!
Coles and Woolies may be in for a shock as online global retail giant Amazon looks to hire a software development engineer in Australia for its Amazon Fresh home delivery grocery service.
Amazon Fresh is the company’s grocery and non-grocery home delivery service which currently operates in three US cities, Seattle, Los Angeles and San Francisco but the retail giant has suggested that it could expand the service to 20 other locations by the end of 2014, including internationally.
Although Amazon is yet to officially confirm if Amazon Fresh is coming to Australia, it’s hard to think otherwise when the job ad reads “as a member of a team focused on innovation, you will responsible for building a system to support a new and confidential Amazon Fresh initiative.” (Click below for a look at the entire job advertisement)
According to the Sydney Morning Herald, online grocery sales represent only 1 or 2 per cent of the Australian market, compared to 8 per cent in the US and 12 per cent in the UK. Still in its early stages compared to the rest of the world, now would be the perfect time for Amazon to jump into the Australian online grocery market.
Jos de Bruin, Chief Executive of Master Grocers, stated in a report with Smart Company that online grocery shopping is currently targeted at “the top end, high-income, time-poor” segment of the market. However with more and more consumers turning to online shopping for clothes, furniture, games and many other household items, it seems likely that there will come a time where increased numbers of consumers begin online grocery shopping. De Bruin goes on to say that independent grocers are not “ignoring” the trend towards online shopping, instead larger members are “watching the trend very closely to ascertain whether to invest in an online platform themselves”.
This looks like a big year for Amazon who are not only looking to expand Amazon Fresh, but according to a report from Mashable, are planning to open its first physical store right across from the Empire State Building in New York City.
Coles, Woolies and independent grocers will definitely be keeping a close watch on any Amazon movement as the online grocery market in Australia may be about to boom!
Will more independent grocers begin distributing online? What do you think of Coles and Woolworths current online shopping service and will Amazon shake things up for the duopoly?