Amazon has added own-brand groceries to its UK website as it amps up competition with Britain’s supermarkets.
Never one to miss out on a lucrative business opportunity, the company capitalised on lockdown restrictions during the Covid-19 pandemic by expanding its online groceries service.
Amazon Fresh expanded its next-day delivery service to customers across the UK driving a 51 per cent uplift in sales during 2020 with the company’s UK revenues hitting $26.4bn – the fastest level of growth in all of Amazon’s major markets worldwide.
Yesterday, the trillion-dollar-company added a ‘By Amazon’ range of groceries to its website which includes household basics such as chicken, bin bags, coffee and toilet paper.
Customers are offered 20 per cent off many of the own-branded items if they subscribe to receive them on a rolling basis – a move which could increase brand loyalty. Amazon is also expected to launch a marketing campaign to attract more customers to its Fresh grocery service.
While Amazon only accounts for a small proportion of the UK groceries market the company already sells Morrisons and Booth products through its online service. Recent competition to purchase Morrisons has led to speculation that a takeover by Amazon could be immanent, but no offer has yet been tabled.
The company purchased the US grocer Wholefoods back in 2017 and opened its first till-less Amazon Fresh supermarkets in London during 2021. Reportedly Amazon has plans to open further stores.