Amazon Fresh UK price matches Tesco
Amazon’s UK grocery business will match the prices of hundreds of everyday items to those offered by rival Tesco, the country’s biggest supermarket chain.
According to a Bloomberg report Sunday, July 17, produce, meat, and fish are among the categories for which Amazon will match prices.
The company is expanding its UK grocery business under its Amazon Fresh banner and now has 19 stores, including the first outside London in the town of Sevenoaks. Amazon Fresh also offers delivery services in London, Leeds, Sheffield, Portsmouth, Liverpool, Glasgow, Birmingham, Manchester and Newcastle.
“We’ve matched and price-locked hundreds of own brand and branded products with Tesco Clubcard,” Amazon.co.uk said. “We will keep the price locked for at least four weeks and add new products every week.” He also added that the Tesco Price Match will only be available for online ordering and will not be redeemable at Amazon Fresh stores. It will also only be available to Amazon Prime subscribers.
Price matching has become a common strategy in the competitive UK grocery market.
Tesco and Sainsbury’s, the country’s second-largest supermarket, match hundreds of prices with Aldi, a German retailer that has increased its presence in the UK in recent years.
Since launching in the UK in 2016, Amazon Fresh has grown its in-store and delivery businesses, but is still far from capturing anything more than a tiny share of the country’s grocery market. In the UK, the big four grocers – Tesco, Sainsbury’s, Morrisons and Asda – together control around two-thirds of the market.
The latest announcement comes as UK shoppers feel the pressure of the highest food inflation in 13 years. They will likely appreciate any action by Amazon and its competitors to reduce their grocery bills.
Read more: UK shoppers feel pressured as average annual grocery bill rises by £380 a year
For all PYMNTS EMEA coverage, subscribe daily EMEA Newsletter.