What if Amazon Fresh Heads to Oz?

If Amazon goes ahead, this could spell mammoth transformation into Australia’s $90 billion grocery retail market, as we know it.

And while the company is being a bit secretive about divulging its plans to head to our shores, a key Amazon Fresh executive has shared some of his thoughts on a potential rollout in Oz.

Brittain Ladd, who is currently guiding Amazon through its overseas groceries delivery expansion, laid out some of his vision in a blog post, detailing how the online retailer should enter the Australian grocery market, which he says is ripe for disruption.

“For years, the grocery industry within Australia has been characterized by intense competition and extreme price wars between the two leading supermarket chains, Woolworths and Coles, who command a staggering 61% market share,” wrote Ladd in the blog.

“I believe no company is more capable of re-imagining the grocery industry and grocery retail stores than Amazon.”

The write up also delves into what the Aussie Amazon stores would be like, painting a picture of a new grocery shopping experience for Australians.

Ladd says the Amazon Fresh grocery store of the future would be like Coles, Woolworths and Aldi rolled into one store. Shoppers would be able to purchase groceries that they are likely to want to touch and inspect in-store, like fruit, vegetables, dairy, meat and bread. “While they make up just 20 percent of a typical supermarket’s stock, these lines account for 80 percent of sales,” Ladd explained.

Other more durable, non-perishable items like canned goods, soft drinks and cleaning supplies on the other hand, would be purchased by tapping on a virtual wall or kiosk in-store, or via the customer’s smartphone app. These products would be stored in offsite fulfilment centres, and delivered to the customer’s home.

Ladd also explores the idea of customers having the option of ordering groceries online and picking it up via drive through lanes at Amazon stores.

If the plans go ahead, Amazon’s ability to give shoppers the option of traditional grocery shopping in-store as well as same day delivery service to their door, could see the online retail giant shake up the Australian grocery landscape in a significant way.

“Amazon will have the ability to compete as a brick and mortar supermarket as well as a discounter, while leveraging their best-in-class online capabilities,” wrote Ladd.

 

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