Supermarkets: Fresh from the Amazon

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UK Only Article: 
UK article only

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Battle lines

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Supermarkets

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An American giant moves into online grocery shopping

BRITAIN’S big supermarkets have had a dismal few years. Aldi and Lidl, two upstart German-owned discounters, have taken huge bites out of their market share, margins have been squeezed and record losses have mounted.
One refuge, however, was in online shopping, which Aldi and Lidl have been reluctant to embrace, despite the fact that British consumers are Europe’s most enthusiastic e-shoppers. Online grocery sales have been growing strongly, and the likes of Tesco, the biggest supermarket, and Sainsbury’s, have taken full advantage. Tesco, which runs a “Click+Collect” service, has about 40% of the online market.

Now, however, that refuge is looking less safe. On February 29th Amazon, an American online retailer, announced that it will start selling fresh food and groceries as well, in a tie-up with the fourth-largest British supermarket, Morrisons. Thus Amazon, with deep pockets and a wealth of experience offering food online in …
Source: Retailing
Supermarkets: Fresh from the Amazon