News

Report says Australian online grocery market to double by 2014

June 21, 2011

According to a story at Australia’s Power Retail, a new report by Nielsen says the online grocery sector in Australia will hit US$25 billion by 2014, more than double the US$12 billion currently spent on groceries via the Web. The story says Nielsen is joining MyWebGrocer to track online grocery sales.

“It’s a very exciting time for the space. You’ve got Amazon crashing in on one side and Wal-Mart on the other,” said Alec Newcomb, chief strategy officer at MyWebGrocer, in the Power Retail story.

The article says recent activity by Amazon demonstrates increased interest in the online grocery space. Amazon has made some key acquisitions, expanded household items and groceries available on its site and is launching a grocery service in Seattle. Additionally, the article notes Walmart is launching an online grocery delivery service as well.

According to Power Retail, supermarkets in Australia are increasing their presence online to catch up. The story mentions that Deals Direct launched Supermarketdeals.com.au, a site that offers savings on grocery items, and retailers Coles and Woolworths have launched e-commerce programs as well.