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The German retailer has invested a further AU$60m to speed up its expansion into the Australian market.

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Amazon has introduced a new range of grocery products in Australia, under the category Pantry Food & Drinks.

Over 1,000 items available at launch

The products include a range of food and beverages, including; health foods, specialty tea, snacks and confectionery, drinks, cereals and breakfast items, cooking ingredients, rice, pasta and grains. There is also a dedicated section for Australia’s favourite brands. There are over 1,000 SKU’s available from over 400 local and international manufacturers. The launch marks the 27th category that Amazon has introduced since entering the market in December 2017.

25% off first orders and two day prime delivery

The range appears to offer a mixture of bulk pack and single pick items, offering low prices on everyday essentials. To mark the launch Amazon is offering 25% off first orders on select pantry food and drink items, plus it also highlights that Prime members benefit from fast and free delivery within two days of orders being placed.

A matter of time before Amazon Fresh launches?

Amazon moving in pantry lines comes as no great surprise. However, doing this within a year of launch means that it has come faster than many had predicted, and it is probably only a matter of time before we see this extended further with the launch of Amazon Fresh. Amazon Australia country manager, Rocco Braeuniger, commented that the company was “delighted” to bring pantry food and drinks to Australia. Amazon Australia now stocks more than 80m products.

Aldi in Australia has launched a new marketing campaign ‘No pointless points’, with the slogan ‘Just more savings than any other supermarket’.

No gimmicks just low prices

The campaign is Aldi’s latest attempt to showcase how it differentiates itself in Australia. With its ongoing focus on low prices, it also highlights that by not having a loyalty scheme, Aldi can invest back into offering cheaper prices than its competitors. The retailer has also launched an online calculator, so that customers can see how long it takes and how much money they have to spend in order to earn a reward via a standard terms loyalty scheme, where one point is earned for every one dollar spent.

Loyalty schemes are popular in Australia

Recent research by Finder.com.au, shows that 90% of Australian shoppers belong to a loyalty scheme, but an Aldi spokesperson, commented, “Loyalty scheme members spend more than non-members. And, in general, they’re poorly rewarded. We think points are pointless. We think loyalty schemes are a waste of time.”

Schemes offer more than just savings on shopping

The calculator excludes promotions, bonus points and partner benefits that loyalty schemes offer and which the 11m members of Woolworths Rewards and 8m members of Coles’ flybuys all benefit from.

Woolworths has become the latest Australian retailer to increase its investment in organic products.

Boosting organic production over the next five years

Australia's market leading grocer has launched the Woolworths Organic Growth Fund, which will assist Australian farmers to increase the production of organic produce. Woolworths will invest AU$30m into the fund that over the next five years, providing grants and interest free loans to growers, in order to expand production. In return, growers will have contracts with Woolworths to provide stipulated volumes of organic fruit and vegetables to meet the growing demand.

Demand for organic is rising 20% YOY

According to Woolworths managing director, Claire Peters, the demand for organic produce has been growing 20% per year for the past five years at Woolworths. This new fund will not only help Woolworths meet this demand, but also through expanding production should make organic items more affordable. Limited innovation in the supply chain to date means that organic items in Australia are often twice the price of regular products.

Coles and Aldi also focused on growing organic sales

Health and wellness is a trend that has long been at the forefront of Australian consumers minds, with Woolworths' healthly living brand Macro generating sales of AU$600m a year. Other retailers are also investing in organic. Aldi recently announced that it was expanding its organic ranges under three exclusive brands. The retailer's primary organic brand, Just Organic, saw sales grow 50% in 2017. Coles also expanded its health food category earlier this year by over 250 SKU's, with the demand for both organic and gluten free items on the rise.

Presentations

02/10/2018
See our up to date 2018 content plan for insight presentations on retailers, trends and channels globally.
01/10/2018
We dive into stores around the world to see how retailers are adapting to the growing demand for organic products. Our research focuses on markets where the organic sector is already well established, including North America and Europe.
13/09/2018
We examine the latest retailer performance in Australia, as well as review the major trends that we identified at the start of 2018.
03/07/2018
We consider five themes shaping development and how the format could innovate in the future.
21/03/2018
New Zealand retailer Foodstuffs is aiming to trial an artificial intelligence (AI) shopping solution to enhance customer experiences in store in coming months.
View all presentations

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This in-depth guide to Australia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

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We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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