It isn’t only bricks and mortar retailers feeling the pinch, with online grocery retailer Aussie Farmers Direct abruptly closing its doors.
In a statement posted on its website, the company said that it was ceasing operations immediately after 13 years in business.
“It is hugely disappointing that is [sic] has come to this. We are simply no longer able to compete against the domination of the major two supermarkets and the influx of cheap imported produce,” the statement said.
“Aussie Farmers Direct started as one small milk run delivering 100 bottles a week. Over the years we grew to be a full-service grocer to thousands of customers across Australia. We have worked with hundreds of farmers and local suppliers over the years, and we are proud to have played our part in getting farmers and Australian households a fair deal.
“Unfortunately, we will be unable to deliver any future orders to our wonderful customers. No one will be charged for these orders. Any customer who was scheduled to have a delivery on the afternoon of Monday 5th March and has been charged for this order will have their order refunded shortly.”
According to KordaMentha, Aussie Farmers direct had 100 franchisees and 260 employees nationally, serving approximately 100,000 customers.
“Unfortunately, it is not possible to continue trading and the business will stop operating immediately,” administrator Craig Shepard said.
However, he noted that the Home Delivery Services (HDS) logistics business unit was unaffected by the administration process and would continue to trade as normal.
Mr Shepard said Aussie Farmers Direct had struggled to compete against the major supermarkets, combined with the low spending habits of Australian consumers suffering from low wage growth.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
Ask the Experts: Business assets and liability after separation
By Anneka Frayne
Anxiety in the workplace
By Staff Reporter
Managing ‘sleeper issue’ of directors’ GST risks
By Jim Koutsokostas