Amazon undercuts Woolworths and Coles on household staples
The AFR reported that Amazon has launched an assault on Australia's $100 billion food and grocery market, prompting complaints from Woolworths that multinational suppliers are favouring the e-commerce giant with lower prices. After stepping up pressure on Woolworths and Coles by adding food and beverages to its non-food pantry range last month, Amazon Australia is now undercutting the dominant supermarket chains by as much as 50% on household staples. Woolworths, which accounts for about 38% of the food and grocery market, plans to seek a "please explain" from suppliers, threatening to remove underperforming brands from its shelves. It seems to us like Woolworths' reaction is exactly the PR Amazon was seeking.