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Amazon’s here – so what’s the future for UK supermarkets?


By Russell Loarridge, Director, ReachFive


Amazon has set its sights on the UK supermarket sector. From the


Amazon Fresh initiative to its partnership with Morrisons, offering free, next day delivery to Prime customers, the arch disruptor is looking to turn the UK multiple market on its head.


Disruptive Grocery While the ‘walk in, walk out’ Amazon Fresh stores in London may not make a ripple on the big supermarket pond, offering eligible Prime customers free, same day Amazon Fresh deliveries on orders over £40 was a clear indicator of Amazon’s plans. And those plans have come very quickly to life: with its latest partnership with Morrisons, Amazon Prime customers can now get free, next day delivery on Morrisons’ products.


Free. Next Day. How are the UK supermarkets planning to compete? Amazon’s market disruption credentials are unparalleled. This is a business with deep pockets and a willingness to wait. It can afford to make a loss on every delivery for years if, in the process, it can persuade its existing legions of loyal customers to use the service for their regular consumables weekly shop, and perhaps even attract a few of the lost sheep not currently fully paid up as Amazon Prime members.


Continues overleaf >


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