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Is Amazon setting out to take on the supermarkets?

13 June 2016

Last week Amazon announced the launch of AmazonFresh for customers in 69 Central and East London postcodes. Amazon Prime members in eligible areas will be able to order their full weekly grocery shop from a range of over 130,000 products including branded goods as well as groceries from selected local food producers and Morrisons own-branded goods. The service offers One-hour delivery slots from 7am to 11pm, seven days a week, with same-day delivery available from 5pm for orders placed by 1pm.

Amazon has stated that pricing will be ‘competitive’ against supermarket pricing and will be benchmarked against the mix baskets of premium, basics and branded groceries at the Big Four.

An Amazon spokesperson stated that “Amazon will be keen but not disruptive on pricing at a time when the discounters are wielding the most power.”

Ajay Kavan, vice president of AmazonFresh, said: "We believe that the key to the long term success of AmazonFresh is to bring together the low prices, vast selection, fast delivery options and customer experience that Amazon customers know and love.

"We are launching with a comprehensive offer in a limited area and will take our time to hone and improve our service based on our learnings and feedback from our customers," said Kavan. "We will be very methodical and considered in how we roll this service out further in the UK."

In addition to fresh fruit and vegetables, meat, seafood, baked goods, dairy and more, AmazonFresh customers will also be also to choose from a range of pet supplies, baby, health and beauty products. All perishable products have a guaranteed minimum shelf life and, Amazon's Freshness Guarantee, states that customers can receive a refund if they are unhappy with the freshness of the products they receive. If an ordered item is not available on delivery, customers will not be charged for the item and will receive a free substitute product in its place.

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