Small share, deep pockets – but should Amazon really have the grocers worried?
Amazon has created plenty of noise about its food offer in the UK, but to date, it has failed to win shoppers in any significant number. Should the major grocers be concerned or does Amazon’s foray into food amount to little more than a damp squib?
Amazon is ramping up its UK grocery offer. This week it revealed it would sell the entire Morrisons food range on its main website for the first time, while millions of Prime members will get their groceries delivered for free after it scrapped charges last month.
The etailer has plans to roll out that service, currently available in London and parts of the Southeast, to other major cities including Manchester, Birmingham and Edinburgh.
The big four are clearly worried. In response, Tesco boss Dave Lewis said it could eventually give members of Clubcard Plus – its own subscription service – free home grocery delivery, too. Observers say the move is designed to defend its share against the onslaught from Amazon.
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