retail news in context, analysis with attitude

• The Wall Street Journal writes that as Amazon brings its online food shopping business to the UK, "it is a nightmare scenario for Britain’s established grocers. But the near-term risk is less that the U.S. tech giant eats their dinner than that it raises the bar for what consumers expect, making it even harder to run a profitable online operation."

Tesco, the story says, "is most exposed, having 36% of Britain’s online market, according to brokerage house Bernstein." But the larger problem is that online competition from the likes of Ocado and Walmart-owned Asda has driven down delivery fees, making online less profitable than it used to be.

"Amazon’s logistics and marketing savvy will only make it harder," the Journal writes.
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