So as France goes, so goes Australia and Amazon’s move into food retailing? Who will Amazon select in Australia to partner with – Coles or Woolies after signing up a major French retail chain for home deliveries of food – instead of doing it all itself?
As Amazon battles to bed down its Australian entry it has shown its hand in France by teaming up with a major supermarkets group to do its food delivery.
Rather than go it alone, as it has done in US markets and in Germany and the UK through Amazon Fresh for its Prime customers (and Whole Foods in America), the online giant has done a deal with Casino group, one of France’s major retail groups, including supermarkets.
Groceries from Casino’s upmarket brand Monoprix chain will be available for customers of Prime Now, Amazon’s high-speed delivery service, according to a statement from Casino on Monday evening (https://www.nasdaq.com/press-release/casino-group-amazon-and-monoprix-join-forces-to-innovate-on-behalf-of-prime-now-customers-20180326-00953).
The service starts later this year, will be available to customers in Paris and the surrounding area. The deal ends months of speculation that Amazon was considering partnerships or acquisitions in Europe and comes as French food retailers such as Casino and rival Carrefour ramp up their strategies in the face of rising competition from online rivals and changing consumer habits.
Monoprix is a leading retailer with a presence in more than 250 cities across France through 6 chains. A subsidiary of Casino Group, Monoprix operates through approximately 800 stores and employs around 21,000 people. The Group generated €5bn in business in 2017. Casino reported consolidated net sales of €38bn in 2017from operations in France, Latin America and in the Indian Ocean region (Thailand). It calls itself the pioneer of the home delivery developed in 1990, Monoprix says it generates more than 3 million deliveries per year, in more than 150 cities in France.
Partnering with other Woolies or Coles, or even Metcash, will be a cheaper, more efficient way of gaining traction in the Australian market where distance is a killer.
