Published on : Mar 04, 2016
The experience of grocery shopping is definitely going to change with Amazon selling food through a supermarket chain. The e-commerce giant has tied up with Morrisons, one of the largest supermarkets in Britain, to sell fresh, chilled, and frozen food. These food products, manufactured by Morrisons will be available on Amazon’s Prime Now and pantry services. This partnership marks Amazon’s growing prominence across the retail sector. However, the British Retail Consortium has warned that around 1 million jobs in the retail industry would be lost in the next couple of years owing to technological developments and increasing cost of operating brick-and-mortar stores.
Retail Industry Giants to Face Falling Sales with Amazon’s Entry
Amazon has its own grocery service- Amazon Fresh across some of the cities in the U.S. In the U.K., the e-commerce company is expanding its presence in the retail sector through Prime Now and Pantry. So far, Amazon’s fresh and frozen food products line was negligible. The deal with Morrisons will boost Amazon’s growth in the grocery market. Amazon Prime Now delivers products to customers within one hour after the order is placed at £6.99. Currently, in the U.K., it is available only in Newcastle, Manchester, Birmingham, London, and Liverpool. Amazon Pantry Service is nationwide and lets consumers build up a box of grocery items to be delivered the next day.
Amazon’s expansion in the retail sector in the U.K. is ringing alarm bells for the big four market players: Asda, Tesco, Morrisons, and Sainsbury who are battling falling sales. Industry analysts have pointed out that delivering a full grocery offer including fresh, frozen, and chilled food has finally made Amazon to compete with these industry giants. Amazon has not yet released the full list of grocery products it intends to deliver but has stated that it will include chocolate, orange juice, soup, and spaghetti.