Food and Drink Internet Retailing in Australia

PROSPECTS

Woolworths and Coles move to capture more online business

Previously seen as slow to expand their online footprints, leading Australian supermarkets Woolworths and Coles are now investing heavily in digital strategies. Both have significantly improved their online services, assortments and delivery options in recent years, while also forming new partnerships that better position them to meet the growing demand for online grocery shopping and compete against other retailers in this arena.

On-demand alcohol delivery retains strong growth potential

Thanks to the convenience trend and the emergence of new technologies, on-demand alcohol delivery services are experiencing a surge in popularity in Australia. Store-based retailers selling alcoholic drinks are increasingly developing and acquiring such services, or partnering with existing platforms like Deliveroo and Uber Eats to deliver to customers.

Amazon Subscribe & Save could drive supermarket price wars online

Amazon is expected to launch its “Subscribe & Save” service in Australia early in the forecast period. This service allows subscribers to obtain discounts of 5-15% on items they regularly purchase, including non-perishable food and drinks and everyday groceries such as laundry detergents, dog food and toilet paper.

COMPETITIVE LANDSCAPE

Amazon ramps up pressure on supermarkets with food and drink offer

Late 2018 saw Amazon add the “Pantry Food & Drinks Store” to its Australian platform. The company now offers a wide range of non-perishable food and drinks from popular local and international brands, via both its own store and its online marketplace.

Tipple acquisition opens up online opportunities for 7-Eleven

Convenience stores operator 7-Eleven acquired a majority stake in alcohol delivery start-up Tipple in 2018. The two continue to operate separately, and 7-Eleven has not announced any plans to start selling alcoholic drinks.

Coles trials new delivery service in partnership with Uber Eats

As part of its wider online strategy, in January 2019 Coles partnered with Uber Eats to trial a service offering delivery of ready-to-eat food items from its store in Pagewood, Sydney. In March it extended the trial to a number of other stores in the city, while also expanding the range of items available to include grocery staples like bread, milk, fresh fruit and vegetables and various snacks.

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