Amazon takes on the Australian food market

Amazon Australia is joining the food market by releasing a line of dry grocery products from October 17.

Items will include tea, coffee, biscuits and organic foods, and products from companies such as Arnott’s and Uncle Toby’s.

Amazon Australia country manager Rocco Braeuniger said since the launch of amazon.com.au in December 2017, Amazon has been focused on growing its selection and services for Australian customers.

“We are delighted to add to the over 80 million products already available on the store with the launch of Pantry Food and Drinks, bringing greater convenience to customers, underscored by everyday brilliant value and fast delivery,” said Braeuniger.

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It is responding to the growing health food trend in Australia by including a number of health and organic food brands in its new range, Amazon explains.

Amazon has also introduced one-day delivery for some urban areas as part of the service in Australia.

German discount retailer Kaufland is also expanding into the Australian market.

The company is expected to open its first two hypermarkets in Australia in 2019 with plans to open 32 stores in Australia by 2023.

Kaufland currently operates more than 1250 stores across Europe.

Despite new competition coming to the Australian market, Coles saw growth in its total sales for the first quarter.

Coles’ supermarket sales were up 5 per cent in the 13 weeks to September 23.

Coles’ Little Shop campaign helped sales jump during the first quarter.

The food sales increase was 0.3 per cent up the corresponding period last year, and up on the previous quarter’s 1.8 per cent lift.