Amazon.com Inc (NASDAQ:AMZN)'s grocery division is pledging to match TescoPLC's prices amid the cost-of-living crisis, becoming the latest retail giant to commit to keeping prices low for customers.
The ecommerce and retail behemoth said in a statement that it will launch its Tesco Clubcard Price Match campaign on Monday, matching and freezing hundreds of prices to match the supermarket giant's discounts.
The move will see the online grocery business decrease the prices of everyday groceries, such as fresh fruit, vegetables, meat, and fish.
With rising costs of living, supermarkets are competing on price and boosting value ranges, even as UK inflation is at a four-decade high of 9.1%, with food costs, particularly for bread, cereals and meat, rising.
The Bank of England has warned that fuel and food price inflation may exceed 11% later this year.
Kantar research also predicts UK grocery bills are set to rise by £380 this year.
“We know that our customers are looking for ways to save on their weekly grocery shopping,” said Russell Jones, Amazon Fresh director.
“This is one way that we're helping customers get great value and convenience with groceries delivered at home with Amazon Fresh. Improving our shopping experience and giving Amazon Fresh customers even more for their money are key priorities for us.”
As Amazon uses price matching in its marketing to drive customer numbers, Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY)'s are also running promotions matching the prices of key items to those of German discounter Aldi.
According to Amazon, the promotion will reduce Tropicana orange juice by 32%, own-brand margherita pizzas by 46%, and Cathedral City extra mature cheddar by 19%, among others.
As part of the Amazon Fresh grocery expansion, the service is now available in London, Leeds, Sheffield, Portsmouth, Liverpool, Glasgow, Birmingham, Manchester and Newcastle.