Lockdown restrictions across most states in Australia extended into 2021 as the government struggled to secure the preferred Pfizer vaccination. As a result, most grocery retailers witnessed further online sales spikes - in part due to the implosion of consumer foodservice due to temporary restaurant closures as part of restrictions in key states, which forced consumers to prepare many of their meals at home.
The advantage of warehouse automation that has made the most headlines in the media and is most often used as an argument for or against the technology, is reduced labour costs. Grocery warehouse automation also comes with significant upfront costs, often reaching millions of Australian dollars.
Aldi Stores has established itself as a key competitor to the supermarket duopoly of Coles and Woolworths in Australia, but has always lagged behind in terms of omnichannel capabilities. However, this is set to change as the discounter chain launched its limited e-commerce offerings in greater metro Queensland, New South Wales, and Victoria.
The response to the pandemic and consumer fears regarding exposure to others in large grocery stores has resulted in many grocery retailers witnessing dynamic growth rates for online orders. Nevertheless, they are continuing to address the need to develop more effective and quicker delivery services to address consumers’ greater demand for convenience.
Australians increasingly moved online for their grocery needs during the pandemic, with services such as click-and-collect and grocery curb-side pick-up enabling consumers to conveniently schedule collection times of their choosing, with the latter eliminating the need to step foot in bricks-and-mortar stores and avoid checkout queues. Furthermore, consumers are increasingly choosing curb-side pick-up over home delivery due to its reduced cost, as many retailers offer this service for free, whereas grocery deliveries typically require additional fees.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).
See All of Our DefinitionsThis report originates from Passport, our Food and Drink Internet Retailing research and analysis database.
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