Amazon and UK Grocery Industry
Amazon and UK grocery are working together. Success on this social platform is critical to long term growth. Great ideas like AmazonFresh and Prime Now delivery across Europe effect all the grocery market.
Competition is very powerful. Also, It can be very difficult for an online retailer to establish itself as a destination for grocery shopping.
Firstly, Prime Now, Pantry and Fresh initiatives were available only to select postcode locations. Despite this, marketers are still predicting a 3% Amazon UK grocery share by 2020. The biggest supermarkets have the most to lose from this outcome. This is a serious threat for all UK supermarkets especially that they share decline.
Supermarkets have many reasons to worry.
Morrisons has already put in place a direct distribution agreement with Amazon. Also, Asda, Sainsbury’s and Tesco have responded to the threat as well. Tesco has launched a same day click and collect service. Asda put in place a similar deal in 240 stores as well.
All retailers are trying to offer more convenient services without losing money. Amazon put massive pressures on customer experience as well. This is the reason grocery retailers are lagging behind Amazon in terms of providing an optimised online shopping experience.
Amazon has launched private label baby wipes, nappies, baby food and coffee in the US and still continue to develop its own brands and product range.
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