Amazon and its Prime, Fresh and Dash services are poised to disrupt the European
grocery market and win online market share.
BY FIONA BRIGGS
Amazon's new services
have the potential
to challenge Tesco,
Sir Martin Sorrell, the CEO at London-based advertising and PR agency WPP, has a favorite question he likes to ask his cli- ents: “What keeps you awake at night?” For the majority who answer, regardless of commercial sector, there is a
one-word answer: “Amazon.”
Within the European grocery market, those
restless nights are intensifying as the global
e-commerce giant launches its Prime Now, Fresh
and Dash services in new markets including the
United Kingdom and France.
Amazon launched its Fresh service in the U.K. in
June 2016 and quickly expanded it to 128 London
postcodes (ZIP codes). Fresh enables Amazon Prime
members to shop from a range of more than 130,000
grocery items from major brands plus offerings from
local food producers and shops. A range of pet supplies,
baby, and health and beauty care products are also
available along with fresh fruit and vegetables, meat,
seafood, baked goods and dairy.
Fast and flexible delivery options provide extra appeal.
Amazon Fresh offers one-hour delivery slots, available
from 7 am to 11 pm, seven days a week; with same-day
delivery available from 5 pm for orders placed by 1 pm.
Amazon recently followed up with the launch of
BIG BLOW TO THE BIG FOUR
Dash, a device that Amazon Fresh customers use to
scan a product barcode or say the name of a product to
add items automatically into their Amazon.co.uk basket.
These moves, initiated within the space of two
short months this summer, have the potential to
disrupt the U. K. grocery market, especially the
four largest supermarket chains: Tesco, Asda,
Sainsbury's and Morrisons.
“The launch of Amazon Fresh in the U.K. will deal
a heavier blow to the ‘big four’ supermarket chains
than many industry analysts imagine,” said David
Jinks, head of consumer research at the online courier
ParcelHero. Industry analysts have said that the launch
of the Amazon Fresh grocery service could help it capture 3% of the grocery market by 2020; but we believe
that could be a conservative estimate,” he added.
Andrew Pearl, director of strategy and insights
EMEA at Profitero, highlights Amazon’s intent.
“In an increasingly competitive European grocery
market, there is only one certainty: Amazon is here
to stay. Even though Amazon is yet to gain any sig-
nificant share within the grocery sector, its recent
initiatives such as the launch of Amazon Fresh and
the Dash wand in the U. K., as well as Prime Now © i