Amazon slashes 1000s of prices – ‘now cheaper than Tesco, Asda and Sainsbury’s | Personal Finance | Finance

Amazon has become cheaper than major UK supermarkets, including Tesco, Asda, Morrisons, and Sainsbury’s, according to analysis. It comes as the major US e-commerce retailer has slashed prices on thousands of goods, making its mark in the UK grocery market.

The price on over 4,000 items available on Amazon Fresh was cut at the end of March, with customers bagging an average saving of 16%. Now, a new analysis shows that thousands of its products are as cheap or cheaper than those of the four supermarkets.

The Grocer’s review of Associa data reveals that two months ago, Amazon Fresh was the cheapest for 35.9% of 2,406 baby, bakery, drinks, ambient, fresh and frozen food items, and within that, exclusively the cheapest for goods, including multibuys and loyalty discounts.

Not only that, but from the week commencing May 5, Amazon also offered the lowest price for 64.9% of 2,313 products, including 22.8% of items where it was the only cheapest option.

Last year, the major retailer closed down 19 of its physical Amazon Fresh stores, though five reopened as Whole Foods Market stores. It has also recently scaled back the regions where it offers Amazon Fresh deliveries to London and parts of the South-east, Birmingham, Manchester and Liverpool.

However, these recent price cuts mark Amazon’s attempt to break into the UK grocery market.

According to the e-commerce giant, its online grocery business grew twice as fast as the rest of the business last year. It noted that nearly one in three items bought on Amazon.co.uk were grocery or household goods.

The company also plans to expand its Amazon Now services, which promise deliveries in under 30 minutes, to areas outside London, and has delivery partnerships with Morrisons, Co-op, Iceland, and Gopuff.