When many of us think of Amazon products, electronics, clothing and games come to mind. However, it was recently announced that the online retailer is to test a new service, Amazon Fresh, which could revolutionise our weekly grocery shop. But is there a gap in this already competitive market?
The new service, which is only available in 69 London postcodes, offers same day delivery for orders placed before 1pm, which includes one hour slots with flexibility of a seven-day week between 7am and 11pm. This increased flexibility will gain good customer experience for those who are restricted by their working hours.
If you are an Amazon prime member you will be required to pay an additional monthly fee of £6.99 on top of the standard £79 subscription charge. This will give you access to over 100,000 fresh and frozen food items including established brands and Morrison products.
With an ever growing competitive industry and already established supermarkets such as Tesco, Sainsbury’s and Aldi, will Amazon Fresh fight its corner? We have seen our supermarkets struggling to adapt to consumer habits, resulting in store closures. Amazon Fresh’s soft launch could indeed show the bigger food suppliers how to progress with the consumer’s rapidly evolving habits.
As well as flexibility, Amazon Fresh has included 50 independent food shops, so their stock will be available for consumers who still want to purchase from their favourite local business.
Home grocery delivery for larger supermarkets has seen low profits due to the costs of delivery vans and warehouses, as well as ensuring the food stays fresh when the customer receives their order. Amazon Fresh has combated this issue by utilising one distribution centre in Bow, East London and using third party delivery firms.
Ajay Kavan, Vice-president of Amazon Fresh, said: “We will be very methodical and considered in how we roll this service out further in the UK.”
Shore Capital’s Clive Black sees this as an exciting prospect, adding: “Amazon Fresh could represent a threshold moment in the history and progression of the British grocery industry and be seen in the same revolutionary light as Archie Norman and Allan Leighton’s recovery of Asda, or Tesco launching clubcard.”
“It is more likely that the industry will see a change in the next 10 to 15 years rather than in the next five years.”.
With this brave move into a highly competitive market, could Amazon Fresh change it up a gear and increase user experience for this ever growing market? Let us know in comment section below.
Giraffe Restaurant Chain Acquired from Tesco