Why new online retail offers producers more opportunity
Amazon is set to launch into fresh food in the UK during this quarter and then set to introduce frozen food too. Poundland also launched into online last week selling more than 2,000 items, including grocery products, for a flat delivery charge of £4.
Both brands are capitalising on what the IGD predicts will become a £17bn value segment by 2019, worth 8% of the UK grocery market over the same period.
While it will inevitably provide competition to the traditional online suppliers, this greatly increases the opportunity for producers to sell to other channels outside of the four major supermarkets.
Which suppliers stand to benefit?
While household brands are more likely to remain the staple selections for Poundland, Amazon is likely to provide greater opportunity for those producing hard-to-track down trendy ingredients, clean foods and convenience packaging. Amazon Prime customers are able to source those foods without incurring any additional delivery charges.
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