Amazon’s collaboration with Harris Farm Markets to deliver fresh produce across 80 Sydney suburbs is unlikely to significantly impact the earnings of major players such as Woolworths and Coles, according to Citi analyst Adrian Lemme. The partnership sees Amazon fulfilling orders from Harris Farm’s Leichhardt store, marking a notable entry into the fresh produce delivery space. Harris Farm Markets is a family-owned grocery chain known for its focus on fresh produce and gourmet food items, operating primarily in New South Wales. Amazon is a global technology company that provides online retail, cloud computing, and digital streaming services.
Lemme estimates the venture could generate between $50 million and $100 million in sales for Harris Farm, which currently has sales of $1 billion and predominantly services the Sydney market. He noted that within the broader $180 billion Australian food industry, this level of sales wouldn’t pose a substantial threat to the market share or profitability of Woolworths and Coles.
However, Lemme added a caveat, suggesting that the competitive landscape could shift if the Amazon-Harris Farm partnership extends beyond Sydney into other Australian states. Such an expansion would broaden the venture’s reach and potentially create a more noticeable impact on the established market leaders. The current partnership is limited to Sydney, minimizing its immediate effect on the national grocery market.
For now, the impact remains contained, with analysts closely watching for signs of broader ambitions. Woolworths and Coles, who dominate the Australian grocery sector, will likely monitor the partnership’s progress and consider strategic responses if the competitive pressure intensifies through further expansion.
