AmazonFresh beats UK supermarkets on price, by at least 17% on average


July 4, 2016| by Profitero

This feature was compiled by Profitero.

According to research by Nielsen,  29% of UK shoppers are aware of AmazonFresh and 57% would be very likely or likely to try it.

Of these, Nielsen found that 75% of users would be likely to use AmazonFresh once a week, nearly nine out of 10 would be likely to use the same day service and 75% would move their existing spend from a current retailer to AmazonFresh.

But how does AmazonFresh compare when it comes to price?

In analysis conducted for Retail Week, Profitero selected 364 branded products from the top results on AmazonFresh (with equal numbers chosen across high-level AmazonFresh categories) and matched these to the same products available on Tesco, Sainsbury’s, Asda, Morrisons, Waitrose and Ocado. Pricing analysis was conducted on June 16th, 2016 and the AmazonFresh postal code used was W1W 6JQ.

Here’s what we found:

  • As with the earlier launches of Amazon Prime Now and Amazon Pantry (who beat UK supermarkets on price both at launch and after launch), AmazonFresh is similarly competitive on price. Other supermarkets are, on average, 17% – 40% more expensive on the same items.
  • All supermarkets were more expensive than Amazon by at least 17%, on average. Although Morrisons, Tesco, and Asda were closer to AmazonFresh’s prices, even these more competitive retailers were still 17-18% higher (see Figure 1).
  • Morrisons had the largest selection of products priced below AmazonFresh. 27% of its products monitored were less expensive than AmazonFresh (see Figure 2).

Figure 1:

AmazonFresh 1

source: Profitero

Figure 2:

AmazonFresh 2

source: Profitero; Note: pricing analysis did not include any Morrisons own-label products that are sold on AmazonFresh.

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