LONDON (Reuters) – Amazon, seeking an edge amid a worsening cost-of-living crisis, will match British grocery market leader Tesco’s prices on hundreds of products, a- he announced on Monday.
Amazon Fresh’s new scheme, which delivers groceries to Amazon Prime members, will match its prices to Tesco Clubcard deals on everyday items, including meat and fish.
“We know our customers are looking for ways to save on their weekly groceries,” said Russell Jones, director of Amazon Fresh.
Faced with the toughest economic conditions in decades, UK food retailers are watching each other’s prices more than ever.
Tesco’s Clubcard price program has been popular with consumers. Holders of the group’s Loyalty Clubcard pay up to half as much as non-holders on some 3,000 products in store and online.
When Clubcard prices are factored in, Tesco increasingly emerges as the cheapest of the big four UK supermarkets in The Grocer’s widely followed weekly price survey.
Tesco and number 2 player Sainsbury’s are also matching product prices to German discounter Aldi.
Amazon does not release figures for its UK grocery sales, making it difficult to estimate its market share.
However, the Competition and Markets Authority ruled in February that Amazon must comply with the grocery sourcing code of practice.
The code only applies to retailers whose annual turnover exceeds 1 billion pounds ($1.2 billion) in grocery sales.
Tesco holds over 27% of the UK grocery market.
(Reporting by James Davey; Editing by Kirsten Donovan)
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