Amazon’s online grocery store is priced to match hundreds of Tesco products as supermarkets struggle for customers amid the rising cost of living.
Amazon Fresh launches its Tesco Clubcard Price Match for items such as fruit, vegetables, meat and fish.
The average annual grocery bill in the UK is expected to rise by £380 this year, according to research firm Kantar.
Supermarkets compete on prices, widening price ranges, while families affected by rising costs of living shop.
UK inflation – the rate at which prices are rising – is at a 40-year high at 9.1%, with the cost of groceries, particularly bread, cereal and meat, rising.
But the Bank of England has warned it could surpass 11% later this year. Fuel and food prices are squeezing household budgets.
Russell Jones, director of Amazon Fresh, said he hoped the pricing campaign “would show how good our value compares to competitors.”
“We are aware that this is the most important thing for customers at the moment,” he told the PA news agency.
- Asda says some shoppers are asking cashiers to stop at £30
Amazon is the latest retailer to use a price match campaign in its marketing efforts to drive shopper traffic.
Tesco and Sainsbury’s are currently price-matching key items with those of German discounter rival Aldi.
Meanwhile, Asda has expanded its budget groceries with a new range, Just Essentials, which includes around 300 products.
Kantar’s warning of rising grocery bills means shoppers could pay an average of £32 a month extra for groceries and other groceries.
The latest survey showed food prices rose 8.3%, the highest rate in 13 years.
Amazon launched its Amazon Fresh grocery operation in the UK in 2016 and has continued to expand, with the service now available in London, Leeds, Sheffield, Portsmouth, Liverpool, Glasgow, Birmingham, Manchester and Newcastle.
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