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INDUSTRY INSIGHT UNDERSTANDING AUSTRALIAN GROCERY The key trends set to shape Australia’s grocery market over the next 12 months and beyond. ABy IGD Head of Asia Pacific Nick Miles. ustralia’s food and consumer goods landscape is changing rapidly. Competition is on the rise, stores are being reworked to better tailor the offer to shoppers, online retailing is growing fast, convenience retailing is becoming more credible, and investment in private label is reinvigorating retailers’ ranges. What can we expect in 2020? Rapid acceleration of online Rewind a few years and Australia was playing catch-up in terms of online grocery innovation compared with other markets. However, since the entry of Amazon into the market, both Woolworths and Coles have significantly increased their investment in online. As a result, online grocery has seen some explosive growth in the past year, with this trend set to continue as both retailers continue to roll out new initiatives and form strategic partnerships to improve service. • Woolworths has partnered with Takeoff Technologies to test its automated micro-fulfilment technology in three locations. It also continues to roll out new rapid-delivery solutions, with 49 stores now offering Delivery Now, 56 Same Day delivery and 123 Drive Up or Drive Thru. • Coles has partnered with Ocado to enhance its website and improve online availability and fresh food quality. The partnership will also build two new automated online fulfilment centres in Sydney and Melbourne using Ocado technology, doubling capacity in these cities. Enhanced differentiation between formats As opportunities to grow retail space 22 RETAIL WORLD APR, 2020