Amazon Takes On Tesco

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Amazon Takes On Tesco

Amazon Competes Against Tesco

Amazon (AMZN) plans to match the prices of several hundred products to compete against Tesco (a UK Grocery chain). Amazon plans to use its company called 'Amazon Fresh' to tap into the retail market of delivering groceries.

With Amazon Fresh, the company will be able to deliver groceries to its members. In fact, the company wants to match the prices of everyday use items such as fish and meat. After this decision, the prices of Amazon Fresh will be similar to the prices of Tesco Clubcard deals.

According to the director of Amazon Fresh 'Russell Js', they are working to ensure that their customers save money on their weekly grocery shopping.

Considering how Britain is facing its toughest economic conditions, the retail giants in the UK are closely monitoring the prices of items.

Tesco - The Dominant Market Player In the UK

Tesco Clubcard is a famous price scheme among consumers. Those who hold the Tesco loyalty card get to enjoy an almost 50% discount on a catalogue of 3000 different products. What's more amazing is that the customers can get discounts for both online and in-store shopping.

Keeping the prices from Clubcard membership into consideration, Tesco is among the top 5 cheapest supermarkets in the United Kingdom. Considering the years of Tesco's presence in the UK, the consumers also trust the company!

The 2nd player in the market is Sainsbury which also tries to match the prices of different market products. But when we try to establish the market share of Amazon, there's no available data.

So in that regard, it is not possible to value the market share of Amazon in UK grocery sales. However, the authority for competition and markets in the UK ruled that Amazon would have to comply with the standard code of practices.

Currently, the standard code of practice only applies to the retailers who reported a $1.2 billion annual turnover in grocery sales.

Currently, Tesco's market share in the UK grocery market is around 27% making it a big player.

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