Amazon Opens Its Fourth UK Grocery Store

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Amazon has continued the roll-out of its ‘just walk out’ grocery store format in the UK with the opening of its fourth outlet in London today.

Amazon-Fresh_LondonThe Amazon Fresh supermarket in Canary Wharf joins the White City and Wembley Park sites that have opened in recent weeks following the launch of the online retailer’s first physical grocery store outside North America in Ealing in March.

At the current opening rate, Amazon would have around 16 sites by the end of the year.

The latest store is situated in Wood Wharf, an office, retail and residential complex. At 2,500 sq. ft., it is similar in size to the first three sites. It features the same cutting-edge sensor and camera technology that allows shoppers to simply place items in their bag and then be automatically billed when they leave.

The stores stock hundreds of new ‘By Amazon’ own label items such as milk and bread, and ‘Our Selection’ premium lines, sourced from UK suppliers. There are also branded products and items that come from Morrisons and Booths, with whom Amazon has pre-existing ties through its online grocery operation.

Amazon has previously said it plans to open more of the hi-tech grocery stores in heavy footfall areas across London and look at other city centre locations. A spokesperson said today that it was looking forward to opening more across the Greater London area “in the near future”.

Analysts have suggested that Amazon will want up to 30 outlets in the first phase of its expansion in the UK. Clive Black, an analyst at Shore Capital, recently said that the new format could be a “seminal moment in the history of the UK grocery market” and indicated Amazon’s ambitions in the sector.

He added: “We don’t think Amazon is engaging in all this guff because it wants to be a marginal player in UK grocery. We expect Amazon to be the key cog in the industry’s organisational change in the next five to 10 years. And we would be very surprised if it didn’t acquire a major British supermarket chain.”

NAM Implications:
  • Best assume that Amazon will roll out as fast as the consumer-shopper demands.
  • And will optimise its consumer-centricity…
  • …either organically…
  • …or by acquisition.
  • As night follows day…

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