Online discount grocer Motatos exits the UK after one year

The retailer sold ambient food and fast-moving consumer goods that would otherwise have gone to waste due to being out of season, changed packaging or having a short shelf life.

The Swedish discounter launched in the UK in June 2022 and offered shoppers bargains on household brands such as Heinz, Cadbury and Kellogg’s, with savings of up to 60% compared with other grocers.

Owner Matsmart-Motatos said it had made the decision to consolidate the business to its native Sweden, as well as Denmark, Finland, Germany and Austria, The Grocer reported.

Motatos chief executive Peter Beckius said: “It was not an easy decision to exit the UK market, especially in light of the positive reception we’ve had from customers and partners.

“As the market situation looks now, however, it is extremely difficult to finance greenfield investments. Therefore, we have decided to put all our focus on developing our DACH and Nordic markets, where we have a longer presence.

“We still have a lot of untapped potential in those regions and financial profitability within reach.”

Motatos’ website also explains that “market conditions are tough right now” and that there are “no immediate plans to return to the UK.”

All outstanding orders to UK customers will be delivered. Fellow online value retailer Discount Dragon has acquired the UK trading assets and stock of Motatos.

Discount Dragon is also offering any former Motatos customer £10 off their first order.

Martin Higginson, chair of Huddled Group, which owns Discount Dragon, said: “We are delighted to complete the acquisition of Motatos UK, which is a natural fit to complement our Discount Dragon brand. 

“At a time when consumers are struggling with the cost of living and looking to seek better value, we believe we are well positioned to offer everyday essentials at heavily discounted prices to the mass market.”