Amazon is set to become a bigger player in the UK grocery market.
In 2020, Amazon UK’s total sales reached £36.3 billion, while Tesco was close to doubling Amazon’s sales at £64 billion. On a sales basis, Edge predicts that Amazon will overtake Tesco as the largest retailer in around four years. Amazon sales are estimated to hit £77.1 billion by 2025, while Tesco sales will grow to £68.8 billion in 2025.
Amazon remains a relatively small player in the UK’s edible grocery sector. In 2020 Amazon ranked 19th amongst the largest grocers. By 2025 Amazon is expected to become the 15th largest seller, surpassing Shell, McColls, BP and Wilko.
As for other supermarkets, Sainsbury’s (LON: SBRY) (SBRY.L) will hold on to its current third place with sales of £42.2 billion. Morrisons will be overtaken as the UK’s fourth-largest supermarket by Asda, which will grow sales by 4.4 percent per year to £11.1 billion in 2025.