Internet retailing giant Amazon is continuing its assault on the UK’s traditional grocery retailers. The company has announced a sevenfold increase in the food and drinks products it offers to online shoppers.
In July 2010 the online retailer started selling around 22,000 grocery products. Just over two years later, Amazon now offers more than 150,000 items, which are sold mostly in bulk.
Allan Lyall, vice-president of Amazon’s European operations, said – in an interview with Independent newspaper – that grocery has completely met expectations and is “growing great”. Lyall explained how Amazon UK had “no plans” to launch fresh food.
Internet shopping accounts for £5.6 billion of the UK’s £163.2 billion grocery market, but it is growing in popularity with consumers. The economic downturn, coupled with rising fuel costs, has encouraged shoppers to go online to carry out competitor price monitoring on food and drinks before ordering the weekly grocery shop online.
IGD’s Shopper Trends – Summer 2012 report highlights how 74 per cent of shoppers surveyed said they were examining prices and promotions extremely closely to find the best value for their hard-earned money.
The UK’s Internet grocery market is predicted to reach £11 billion by 2016, according to retail intelligence provided by research group IGD.
© 2012 Profitero
Pricing intelligence company Profitero works with retailers and manufacturers to help them increase sales and maximise their profits by using competitor price, promotions and stock information at scale. For more information on Profitero price intelligence and competitor monitoring, visit www.profitero.com or email firstname.lastname@example.org.