The Australian grocery landscape is facing a seismic shift as global titan Amazon enters the fresh food arena, striking a strategic alliance with premium grocer Harris Farm Markets.
This landmark deal directly challenges the long-standing "duopoly" of Woolworths (ASX:WOW) and Coles (ASX:COL), marking the first time Amazon will deliver fresh produce to Australian doorsteps.
Initially launching across 80 Sydney suburbs—from Double Bay to Lakemba—the service integrates Harris Farm's high-end inventory into the Amazon Prime ecosystem.
Amazon Prime members will receive free delivery on orders exceeding $100, with logistics handled by Amazon Flex drivers using specialised chilled packaging.
Orders are fulfilled at Harris Farm’s Leichhardt hub, ensuring a seamless "pantry-to-plate" experience that bridges the gap between dry goods and perishables.
Arno Lenior, Director of Amazon Prime Australia, noted that while household staples have seen 30% year-on-year growth, fresh food remained the "missing piece" for a complete shop.
For Harris Farm, a family-owned business with nearly $1 billion in annual sales, the partnership provides the digital scale needed to battle its larger rivals and discounter Aldi.
Industry analysts warn that this move capitalises on a rapidly evolving market; online grocery sales now account for 11% of total spend, with Coles and Woolworths reporting double-digit digital growth.