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In 2015, the value of online grocery shopping sales in Australia amounted to * U.S. dollars. This value was forecasted to more than double by 2020; driven by consumer preference changes and the ever-increasing digitization of the country. While the majority of online spending by Australian consumers was attributed to homeware products, online grocery shopping still ranked among the top three categories in 2017.

Why are Australians buying online?

When considering the frequency of online grocery purchasing, almost ** percent of consumers stated that they bought online once per month. Convenience and time saving factors were the main reasons for Australians to purchase groceries online. In a recent survey, free shipping was by far the most persuasive aspect pushing Australians towards buying their groceries and food on the internet. As a consequence of changing consumer habits, the supermarket and grocery store industry in Australia has experienced rapid change over the past few years.

The evolving marketplace

Industry giants, such as Woolworths and Coles, have expanded their online efforts in order to remain competitive. In early 2019, Coles committed to building *** new highly automated fulfilment centers based in Sydney and Melbourne. Woolworths has also recently entered into a partnership with Takeoff Technologies, a U.S. based start-up, to build smaller, micro fulfilment centers across Australia. Consumer demand has undeniably driven heavy investment into these companies’ respective internet-based delivery and fulfilment goals.