Analysts have warned competition in the convenience sector could be intensified as Amazon scours London for sites, but say the sector has seen off bigger challenges.
It has been rumoured Amazon has identified a number of prospective sites to bring its ‘Just Walk Out Shopping’ experience being trialled in Seattle to the UK. It involves customers using the Amazon Go app to choose the products they want, and shop without queues and checkouts.
However, Neil Saunders, managing director at Columino, told RN: “Convenience stores have already seen the big supermarkets and discounters muscle in on their market, so in a sense it’s not as big a challenge as many have already faced.
“But, arguably, there’s already an over-supply of grocery, particularly in busy urban locations, so it will further crowd a very competitive field.”
Steve Rodell, managing director at Christie & Co, added Amazon’s success will depend heavily on choosing the right locations.
“Morrisons tried and failed to get into the convenience sector, so success isn’t guaranteed,” he said. “And independent stores will maintain their usual advantages over Amazon.”