retail news in context, analysis with attitude

USA Today reports that Amazon introduced its Amazon Pantry service to the UK last week, the fourth market where the program has been made available, following the US, Germany and Austria.

According to the story, "The grocery delivery service allows customers to order up to 44 pounds (20 kilos) of pantry items that don't require refrigeration for a flat fee of £2.99, which is $4.54. The box is delivered the day after the order is placed."

Bloomberg writes that "the move will provide a fresh source of concern for established supermarket chains such as Tesco Plc, and also for Internet-only grocer Ocado Plc. The industry’s profit margins are being pressured by a price war resulting from the expansion of German discounters Aldi and Lidl. J Sainsbury Plc said this week it sees no end in sight to the falling grocery prices that have weighed on sales and profitability."

Amazon Pantry is only available to Amazon Prime members.
KC's View:
Pantry is part of the Amazon's broader strategy - get people to sign up for Prime, which tends to turn them into more frequent and profitable customers, and then offer them even more inducements to buy from Amazon, which leads them to become even more frequent and profitable customers, creating an ecosystem of sorts that establishes a path of least resistance between the shopper and Amazon, which creates even more frequent and profitable customers...

You get the point. The only difference in the UK is that they do it all with a stiff upper lip.