Revealed: The secret plan to destroy Woolies and Coles’ fresh food businesses

woolies-and-coles-food-prices-upYour fresh fruit and veggies are getting more expensive. You aren’t imagining it – your shopping is getting more expensive. This chart published by the AFR shows that the two big chains have raised fresh food prices significantly over the inflation rate in the last four years.

But one big new supermarket brand has a secret plan to “destroy the retail environment in Australia.”

Deutsche Bank have been tracking fresh fruit and vegetable prices in major supermarkets since 2012. Their latest report showed that prices jumped more than 7 per cent in the three months to the end of December 2016. That’s after staying pretty flat since June, and falling in the first half of 2016.

Prices at Coles are rising faster than at Woolworths and of course both are generally more expensive than the limited range of fresh goods at Aldi.

Now, all three supermarket chains face the entry of Amazon Fresh to Australia in 2017. Amazon may use its overseas grocery brands Prime, Prime Now and Prime Fresh to sell groceries and fresh food in Australia according to Business Insider.

Amazon will open distribution centres and physical supermarkets in every Australian state in 2017 according to a fund manager who says he has been briefed on the secret plans by an Amazon executive.

“They will be doing general merchandise and they will be doing fresh as well,” Watermark Fund manager, Justin Braitling, told the Australian Financial Review.

“They will also be putting physical stores on the ground, these will mainly be in regional areas.”

“We spoke to the guy rolling out Amazon’s business here in Australia,” said Mr Braitling, “and in his words: ‘We are going to destroy the retail environment in Australia’.”


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