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Amazon starts a food fight with its ‘AmazonFresh’ grocery trial

15 July 2013

Online retailer Amazon is currently trialling a new grocery delivery service called ‘AmazonFresh’ in Los Angeles and Seattle. The service provides same day delivery from a range of local suppliers. After a $299 yearly subscription, there are no further delivery charges (no matter how small the order).

Currently, the majority of online grocery shopping relates to the ‘main shop’. Amazon’s hope is to tap into the ‘top-up’ convenience shopping which accounts for around 37% of the spend in bricks-and-mortar grocery stores.

Even though the AmazonFresh products are sourced from local retailers, we think the likely effect of this service will be a squeeze on local stores and the supermarkets’ convenience formats. If this service allows you to select the best-priced grocery items from all over your city without leaving your home/office, and the quality of product is right, this could dramatically change the way we ‘top-up shop’…

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