Amazon Eyeing More Than 250 Supermarkets Across UK

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Amazon is reported to have developed detailed plans to open hundreds of its hi-tech checkout-free grocery stores across the UK over the next three years.

Last week, the sites for the next three ‘just walk out’ Amazon Fresh stores were revealed that will take the total opened since the format’s debut in March to nine.

According to internal documents seen by Business Insider, Amazon wants to have over 260 high street supermarkets operating in the UK before the end of 2024 to challenge the established players in the sector.

The internal Amazon documents said: “In 2022, we assume a broader rollout of 2 store launches per week by the end of [the] year, targeting 60 total openings.

“In 2023 and 2024, we are planning 100 store launches per year, in line with more aggressive opening programmes achieved by convenience stores in the UK in the last five years, Tesco’s, Sainsbury’s and Co-op have all exceeded 100 openings per year.”

According to the report, Amazon is also looking to open supermarkets in Germany, Spain and Italy next year.

However, the online giant acknowledged internally that the project has faced some challenges. The team leading the expansion in the UK has reportedly struggled to meet its goals, with only six of the 26 stores that were scheduled to open before the end of this year currently in operation.

All of the Amazon Fresh stores opened so far have been in high footfall areas in London. The company has already confirmed that additional stores are planned for the Greater London area, although roll out to other large cities is expected.

Commenting on the report, an Amazon spokesperson said: “We do not comment on rumours or speculation.”

Amazon continued to expand its physical presence in the UK last week with the opening of its second non-food ‘4-Star’ store that offers its bestselling lines of electronics, homeware, toys, games, and books.

NAM Implications:
  • Best assume this plan will proceed as planned…
  • …with roll-out faster, if anything.
  • Only issue is the extent to which you can secure and maintain your fair share.
  • As well as coping with retaliatory moves by Amazon’s rivals.

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