Amazon powering ahead with bold ambitions for UK grocery, warns TWC

Amazon’s aim to become a major player in UK grocery sector appears to be paying off, 55% of consumers across the nation have heard of Amazon Fresh, according to new data

According to TWC Trends research conducted in June 2022 on the views of 1.000 UK consumers, 68%of Londnoers have heard of Amazon Fresh, renowned for its lack of checkouts and payment via the Amazon app.

Just over one in 10 have shopped at an Amazon Fresh store and a further 19% would try it out if a store opened nearby.

The data also showed that online grocery is slowing slightly and highlights limited consumer loyalty to any retailer despite tactics such as fixed delivery fees and discounts.

READ MORE: Amazon Fresh takes on Tesco with Clubcard Price Match campaign

Amazon now operates 19 stores, mostly in and around London, with its latest opening in commuter town, Sevenoaks, in Kent. The retailer has previously expressed an intention to open 260 physical stores by the end of 2025.

Latest TWC Trends figures suggest that there is little loyalty in online grocery, with only 18% of consumers saying they always use the same retailer and 13% saying they use an online delivery subscription such as Tesco Delivery Saver or Ocado Smart Pass.

These schemes offer unlimited delivery slots for a fixed monthly or annual fee, along with additional benefits such as access to coveted Christmas delivery slots and in some cases discounts on certain items or free gifts.

“Amazon appears to be powering ahead with its bold ambitions for the UK grocery sector,” TWC communications director Sarah Coleman said.

“Two recent initiatives come to mind – offering 25% discount to Prime members shopping in its Fresh stores on the run up to Prime Day and price matching Tesco (including Clubcard deals) on online grocery orders, presumably both with the intention of driving trial of its services.”

Coleman added: “The low level of loyalty in the online grocery channel means it’s all to play for and given the current cost-of-living crisis, any play on price is likely to be well received by consumers and may just encourage them to switch their shopping habits.”

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