Co-op Becomes The Latest Supermarket To Run On Amazon’s Rails

The service will initially be available in the Glasgow area before expanding across the UK in the coming months, as Co-op aims to double online sales by the end of the year.as supermarket chains now accessible via Amazon’s platform. So why are retailers increasingly content to overlook the huge competitive threat posed by the e-commerce giant? Three reasons: Amazon's reach, technological prowess and fulfilment capabilities.

And Co-op won’t be the last retailer to jump on the Amazon bandwagon. In the absence of regulatory intervention, expect more retailers to run on Amazon’s rails in the future, particularly if it helps them to enhance the customer experience or drive traffic to stores . The unique dual role of competitor and infrastructure is becoming more apparent by the day. ‘Co-opetition’ - no pun intended - is a key theme for the future.

But the pandemic afforded Amazon a once-in-a-lifetime opportunity to raise awareness and establish credibility in its grocery offering. And the tech giant seized the moment, capitalising on unprecedented demand by expanding delivery capacity, making same-day grocery delivery a “free” benefit for UK Prime members, launching new private label ranges and accelerating its bricks & mortar ambitions with the launch of Amazon Freshin London, its first checkout-free store outside of the US.

“What we did over the past year [in grocery] was responsive to customer demand. But it was also a continuation of experimentation in the category,” Amazon’s UK boss John Boumphrey told me in a recent interview. “Demand for online grocery went up significantly and a lot of businesses weren’t able to keep up.”

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