Amazon matches Tesco prices as UK's inflation soars at 40 years high

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Amazon's online grocery shop, Amazon Fresh is reportedly matching prices with several Tesco products as the supermarkets face challenges in acquiring customers following the soaring cost of living in the UK. As per credible sources, the online grocery platform is commencing its Tesco Clubcard Price Match on items like vegetables, fruits, meat, and fish.

Currently, supermarkets are contending on price and increasing the value ranges as families suffer from the rising cost of living. In fact, estimates suggest that UK's average annual grocery bill is estimated to rise by £380 this year.

Inflation in the UK is reportedly at a 40-year high of around 9.1%, with food costs, especially for cereal, bread, and meat, climbing.

However, as per the Bank of England, the rate is expected to exceed 11% later this year as food and fuel prices impact household budgets.

Director of Amazon Fresh, Russell Jones said that the company hopes the pricing initiative would show how good their value is compared to the competitors. He said that the firm thinks this is the most crucial thing for the customers at the moment.

Amazon is said to be the latest retailer using the price match campaign in its promoting efforts to drive customer numbers. At present, Sainsbury and Tesco are coordinating the prices of some essential items against those of German discount rival Aldi.

Whereas Asda has enlarged its cut price groceries with Just Essentials which encompasses some 300 products.

The recent warning issued for increasing food bills means shoppers will be paying around an extra £32 a month on average per month for food and groceries. The latest survey showed grocery prices have increased by 8.3%, the most significant rate in 13 years.

In 2016, Amazon started its Fresh grocery operations in the UK and has continued to enlarge its services since then. Its services are now available in Sheffield, Birmingham, Portsmouth, London, Liverpool, Leeds, Glasgow, Newcastle, and Manchester.

Source Credit - https://www.bbc.com/news/business-62197914