In what could be a very exciting move, Amazon UK is set to launch an online grocery store on the UK to take on the mights of the big four – Tescos, Sainsburys, ASDA and Ocado (Waitrose). Certainly it’ll be a very interesting launch at a time where consumers are looking for ways to cut down on their weekly shopping because of the credit crunch and after the supermarkets began to encroach onto Amazon’s traditional territory of books, CDs and DVDs.
Amazon has trialled out a grocery service in Seattle, WA called AmazonFresh so it is likely a UK launch will be modelled on this. The UK would be much more profitable for Amazon to launch a grocery service given the UK’s smaller geographic size and higher population density.
Here’s what Retail Week said:
Amazon is expected to emulate its US grocery offer, comprising more than 45,000 non-perishable items, in this country. A launch date has yet to be decided but industry sources said it is likely to be this year.
In the US, Amazon offers shoppers savings by enabling them to buy in bulk. The e-tailer also offers free delivery to prime customers and tracks routine purchases on a shopping list feature on its site.
The Daily Mail of London says of Amazon Fresh:
Customers pick up groceries from virtual supermarket aisles. Delivery times are flexible, with a ‘pre- dawn’ drop guaranteed before 6am if you order by midnight; a daytime delivery in a one-hour time slot picked by the customer and evenings up until 9pm.
The customer does not have to be at home and for orders over £20 delivery is free.
Certainly something to watch and the possibly of some new and exciting competition into the UK grocery market which has been dominated by Tescos and Sainsburys for way too long.