Competition is set to increase for retailers, as retail giant Amazon will announce today that it is expanding into the UK grocery sector.
Amazon Fresh, the company’s delivery service, will initially be launched in 69 postcodes across central and east London.
Members of Amazon Prime will be offered same-day deliveries on over 100,000 fresh and frozen products, with orders received by 1pm delivered by 11pm.
Morrisons will supply its own-brand products to the service, although the majority of items will be branded goods. Amazon will benchmark its prices for these goods against the ‘Big Four’ supermarkets.
Health and beauty products, pet food and confectionery are some of the most popular grocery items online shoppers claim to currently purchase on Amazon
– Vanessa Henry, IGD
The new service will also deliver items from 50 independent food retailers, such as Borough Market confectioner Konditor & Cook, which will also be available for same day delivery.
“The bar in [UK] grocery retailing is exceptionally high,” Ajay Kavan, vice-president of Amazon Fresh, told The Daily Telegraph. “The supermarkets and grocers are among the very best retailers in the world.”
He added that Amazon’s strategy was to offer shoppers low prices, a wide range and quick delivery options.
According to research by IGD, a record number of British grocery shoppers bought their groceries online in the last month. Around 40% of shoppers who have previously bought groceries from Amazon said they would consider buying fresh food from the site.
“Health and beauty products, pet food and confectionery are some of the most popular grocery items online shoppers claim to currently purchase on Amazon,” said Vanessa Henry, shopper insight manager at IGD.
“Over time Amazon could make an impact, but we don’t expect things to change overnight.”