Amazon to sell own branded groceries in UK

Amazon will be reportedly adding its own branded groceries to its UK website, supplementing its existing tie up with Morrisons.

According to a Daily Telegraph report, shoppers will be able to add hundreds of ‘By Amazon’ and ‘Our Selection’ products to their baskets “in the coming weeks”. It already sells groceries from Morrisons and Booths on its website.

Amazon started offering free grocery delivery to Prime members in Britain last summer, and in March this year, opened doors of its till-less convenience store in Ealing, London, its first physical shop and first grocery store outside of the US.

The 2,500 sq ft store boasts the ‘By Amazon’ range, which includes products such as meat, poultry and fish, dairy, fruit and veg, bakery, freshly prepared meals and everyday essentials.

The online giant then said that they look forward to opening additional stores in the Greater London area.

Commenting on the latest development, Fraser McKevitt, head of retail and consumer insight at Kantar, said the move could bring Amazon’s offer more in line with British shopping habits.

“The British public is among the most reliant in the world on retailer own label brands. Currently 11 per cent of Amazon’s grocery sales are own label lines, well below the 50 per cent market average” he noted.

McKevitt added that Amazon could also capitalise on the rapid shift to cash-free payments, which has been fuelled the Covid-19 pandemic restrictions.

“Across major grocery retailers, 87 per cent of payments are now made by card rather than with cash. As we shift to cashless payment methods, retailers have been looking to make purchasing as seamless as possible,” he said.

“Amazon launched its new ‘just walk out’ stores, while Tesco announced last week that it is preparing to introduce its first till-less shop, and we anticipate more retailers will follow suit.”