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Amazon Fresh enters the grocery market

Amazon Fresh enters the grocery market

The seasonal results from the supermarkets were recently released and in the 12 weeks ending 3rd January, sales at Tesco, ASDA and Morrisons fell by 0.2%. Of the ‘Big 4’ supermarkets, only Sainsbury’s held on to its market share, growing by 0.8%.

And, even more interestingly, the budget retailers Aldi and Lidl say their market share grew by 8.3%. In fact, Aldi celebrated their “highest ever sales in a single day” on December 23rd, the store’s most successful day since it opened in the UK 25 years ago.

The secret to the success of the so-called budget retailers is appealing to middle class shoppers looking for a bargain – along with more luxury items such as champagne and even lobster.

There are further challenges on the horizon as the likes of Amazon are joining the grocery market. They have been trialing a new service called Amazon Fresh. Amazon say many people still avoid placing grocery orders online, as they are put off by expensive delivery costs and inconvenient wait-in times. Amazon plans to offer fast, cheap, same day delivery – adding to the woes of the established players.

We’re keeping a close eye on this to see how it all pans out.

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