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Britain’s Sainsbury’s trials similar concept to Amazon’s Prime Now

Online shopping is one of the better performing parts of retail Britain and has become an important battlefield for big supermarkets as they grappl...

 

Britain's Sainsbury's trials similar concept to Amazon's Prime Now

Online shopping is one of the better performing parts of retail Britain and has become an important battlefield for big supermarkets as they grapple with the growth of the German discounters Aldi [ALDIEI.UL] and Lidl [LIDUK.UL ].

Free food UK market will almost expected to double to 17.2 billion pounds ($ 23 billion) in the five years to 2020, according to industry group IGD exploration.

Sainsbury’s is trialing its new service, called “Chop Chop” in the Worth area of ​​south London, which will have a afleweringsfooi of 4.99 pounds.

Customers within three kilometers of its Worth store can be ordered up to 20 Sainsbury’s products for delivery to their homes within an hour, using an app on Apple devices.

Sainsbury’s CEO, Mike Coupe analysts at Bernstein, in an interview with the brokers on Thursday that the company can see potential demand for the provision of a basket of food on a very short timescale.

He noted that Sainsbury’s has nationwide store network, vary with a large fresh food in each of them, and the online retail expertise in order to provide a service as the market develops.

Amazon launched minister now in London a year ago and it is now available to more than 30 percent of the UK population.

The phone is available Prime members and provides one-hour delivery on over 15,000 items for 6.99 pounds, or delivery at no extra cost within a selection of two hours, same day delivery slots.

items available include necessities such as fresh milk, diapers, coffee and chocolate, as well as consoles, toys, gifts and sports equipment.

Last month, Amazon also has a British version of the US Amazon Fresh food afleweringsdiens, increasing pressure on traditional supermarkets.

Coupe also has the Bernstein analysts that he saw no reason for rival Asda, under new CEO Sean Clarke, “is to go hard on price,” are most likely saw action then move to improve retail standards , service and availability.

Speculation of a racheting up of an active prys war general since Wal-Mart, the American owner Asda, said last month would balance move Asda’s strategy to protect market share to protect profits.

($ 1 = .7489 Pound)

(Reporting by James Davey; Editing by Susan Fenton)