Amazon Becomes Fifth Biggest UK Retailer

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As evidence of Amazon’s rapid growth in the economy, new research revealed earlier this month indicates that e-commerce giant Amazon has now become the fifth largest retailer in the UK.

The reports, conducted by industry analysts GlobalData, now rank Amazon over some of the UK’s leading supermarkets and department stores. Their analysis indicates that only the top four largest grocery chains in Asda, Sainsbury’s, Morrisons and Tesco, draw more sales overall than the e-commerce giant at present. Amazon currently accounts for more than a third of sales made on the internet in the UK, with big names such as Marks & Spencer, Boots, Aldi and John Lewis now accounting for a much lower percentage and falling behind Amazon’s online retail business.

Soaring up the Ranks

The news of Amazon’s new ranking within the retail industry is said to have come directly from their 2017 and most recent first quarter sales results. Last year saw Amazon increase its retail sales in the UK by 22.5%, allowing them to both maintain and add to their overall market share. Referencing the statistics evidencing Amazon accounting for more than a third of all online spending, GlobalData Senior Retail Analyst, Sofie Wilmott commented “Amazon is soaring up the ranks of UK retail with the online behemoth only held off the top spot by the big four grocers in 2017. It’s supremacy in the retail market considering it sells non-essential items and lacks physical stores in the UK, is testament to its continued innovation and success at meeting customer needs.”

New Merger

The breaking news of a merger deal between UK supermarket giants Sainsburys and ASDA this morning could be likely to alert Amazon as businesses continue to adapt to customer’s shopping habits. The deal, reportedly worth £15bn, is set to leapfrog Tesco to now become the UK’s largest private sector employer.

A statement released shortly after the announcement, states that the merger deal will be a “great deal” for customers, staff, suppliers and shareholders of the two businesses before going on to explain “The retail sector is going through significant and rapid change, as customer shopping habits continue to evolve. This has led to increased competition across grocery, general merchandise and clothing, as customers seek ever greater value, choice and convenience. Bringing Sainsbury’s and Asda together will result in a more competitive and resilient business that will be better able to invest in price, quality, range and the technology to create more flexible ways for customers to shop.”

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