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AmazonFresh online offer launches

Published:  15 June, 2016

AmazonFresh officially launched yesterday in the UK taking on the major multiple retailers to grab market share in the online grocery market channel.

AmazonFresh is available initially in 69 postal codes across London and could spell trouble for competitors like Tesco, Waitrose and Sainsbury's who have all achieved impressive growth in the online category.

The site offers free delivery on all orders over £40 and will offer one hour slots and offers same-day delivery options, but the service is only available for Prime and Fresh members.

Morrisons is one of the suppliers to the new Amazon platform, which is good news for the retailer. It allows Morrisons to move quickly into the online space without having to invest heavily in logistics in central London. The site offers several of Morrisons own label wine range as well as bigger well known brands.

There are options to select country of origin, varietal, vintages, alcohol by volume, price and suggested food pairings.

By the end of the year the online grocery market channel is forecasted to be worth an estimated £9bn in the UK and the growth rate is expected to exceed 10% as well, according to Nielsen.

Many of the multiple retailers have moved into the channel and have been working at establishing themselves for a few years now, with online being a highlight during a particularly tough time for grocers. Aldi recently launched its online wine offer in an effort to cater to more customers.

According to Nielsen though, "The 'Big Four' are most at risk of losing spend to AmazonFresh, mainly because it offers branded goods, which will have greater influence on 'Big Four' shoppers rather than those of the discounters". 

Another area that could potentially be negatively impacted is also the convenience sector which has benefited recently in the change in customers' shopping habits. Many online shoppers have used the convenience shops to top up during the week between larger weekly or online shops. 

With same delivery AmazonFresh could potentially wipe out some of these gains.