Whether it’s strikes in Germany, tax-related controversy or the occasional lapse in good taste in terms of product, Amazon is rarely far from the headlines.

Whether it’s strikes in Germany, tax-related controversy or the occasional lapse in good taste in terms of product, Amazon is rarely far from the headlines.

The retailer, which celebrated its 15th anniversary in the UK last week, continues to exert a profound impact over the rest of the industry and a number of retailers have struggled to cope with its onslaught.

While this has been most apparent in areas such as music, DVDs and books (indeed, the launch of the Kindle will come to be regarded as one of the most significant developments in the history of publishing since Steve Guttenberg, or someone, invented the printing press), there is every sign that no category is off limits for Amazon. The retailer’s rise from zero participation to becoming one of the largest sellers of diapers (sorry, nappies) in the US is well documented and it can only be a matter of time before this success is replicated in other areas.

Both through its eponymous site and through a wealth of sub-brands including AmazonFresh, Diapers.com and Wag.com (pet care), Amazon’s ambitions to further its scale as a major FMCG retailer in the US are obvious to see.

In the UK, its immediate aspirations appear less audacious but there should be no doubt that Amazon will become a force to be reckoned with in the spheres traditionally dominated by supermarkets.

Amazon’s success, it should be remembered, is not achieved through keen pricing alone. Through mechanisms such as Prime, Amazon Family and Subscribe & Save, the company is fantastically well positioned to create long-term loyalty.

While Amazon’s UK grocery offer is less than seamless at present, there would appear to be little doubt that it will fill in the gaps and bring more of the range in-house.

Replicating AmazonFresh in the UK might still be some way off, but there might also be the possibility of acquisitions to build up capability in fresh at a more rapid pace. Ocado is markedly more expensive than it was a year ago, but Amazon isn’t short of cash or determination.

  • Bryan Roberts Director of retail insights, Kantar Retail