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A Fresh New Era: Amazon Surprises With Oz Vegie Plan

To the surprise of most observers, Amazon is now reportedly looking to launch of its food and groceries service AmazonFresh in Australia later this year. Previously Amazon was thought to be planning a major assault on the home goods delivery market rather than taking on  the likes of Coles, Woolies, Aldi and IGA.

It has begun advertising for technical staff in Brisbane in a move that will send a shiver down the spines of local retailers, according to an Australian IT report.

And some observers reckon most supermarket operators may be quite unprepared for the implications of an all-out AmazonFresh assault. “Many Australian retailers remain unprepared for Amazon’s arrival, or may be understating the potential impact that Amazon’s presence will have,” said Jerry Macey, CBA’s retail national manager.

The Californian company is already advertising for key staff, the Oz says. AmazonFresh, a grocery delivery service that currently serves Seattle, Los Angeles, San Francisco, New York and London, is currently looking for a software development manager based in Brisbane.

In the USA, AmazonFresh offers same-day delivery service of groceries. In Australia it is aiming to be about 30 percent cheaper than the big Down Under supermarkets.

Of Aussie retailers surveyed by CBA, 41 percent said they believed Amazon’s entry will be a threat to their business; 11 per cent said it was an “opportunity”: while 49 percent said Amazon would have no impact.

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