Just Walk Out tech powered Amazon Fresh UK stores drop prices amidst cost-of-living crisis

Amazon Fresh UK has dropped the prices of over 200 products across all 20 of its stores.

Amazon says that it is “helping customers save on their home essentials at a time when many are feeling the pressure on their pockets”. 

The Price Cut promotion offers reductions of up to 40% on everyday essentials from household brands, including Heinz Tomato Ketchup for £2.25 (from £3.40), Doritos Chilli Heatwave Tortilla Chips Sharing Bag for £1.25 (from £2.15) and Flash Bleach Clean Spray for £1.75 (from £2.80). 

Amazon Fresh stores also offer the own food brand ‘by Amazon’, which features hundreds of items, hot food throughout the day, and on-the-go meals for breakfast, lunch and dinner.

There is also a coffee and pastry deal for £2.65, with a choice of 10 pastries and coffee machines offering normal milk and Oatly.

And a £10 Italian dine in for two meal deal which features by Amazon main meals such as Nduja Sausage Pasta, Porcini Mushroom & Truffle Tagliatelle and Spaghetti Bolognese alongside a side and dessert which choices include Pizza Express Original Doughballs and Gü Salted Caramel Cheesecakes. 

Adjustment strategies

Amazon Fresh stores used to involve a customer scanning a code in the Amazon app at an entry barrier.

The barrier then opened, enabling people to enter, pick items and walk out, receiving a receipt shortly after leaving.

The ‘frictionless’ process has been rejigged, however, with the two newest stores binning the entry gates, and instead requiring customers to scan the app or a payment card as they exit. The entry barrier has also recently been ditched at the Angel and Islington, London stores.

An Amazon spokesperson told RTIH: “We are always innovating on behalf of the customer and we will continue to find ways in which we can better serve our customers. We’re excited to welcome customers into the new stores and look forward to their feedback.”

Make of that what you will. Our hot take: Amazon bet big on Just Walk Out technology and discovered that, shock, horror, it wasn’t for everyone.

So, expect a hybrid approach from now on as the e-commerce giant attempts to make inroads in to the hugely competitive UK grocery stores space.

NEW ADDITIONS

Earlier this year, Claire Peters and Peter Bowrey officially joined Amazon Fresh, taking on the roles of Vice President of Retail and Vice President, Amazon Fresh Operations respectively.

RTIH first reported on their appointments in August of last year.

Peters comes onboard from Woolworths Supermarkets where she served as Managing Director.

Her CV also includes a stint as Chief Operating Officer at Tesco Stores.

Bowrey, meanwhile, worked for Tesco for over 30 years across various functions and internationally.

Most recently, he was Retail Director at Boots.

In a LinkedIn post from last year, Tony Hoggett, SVP Worldwide Physical Stores & Speciality Fulfilment, Amazon, said: “I’m excited to announce Claire and Peter are joining our growing Amazon Physical Stores leadership team.”

“Both Claire and Pete will join Amazon in early 2023, bringing decades of grocery, international and multi-channel retail experience.”

He added: “I’m inspired by the Amazon Physical Stores and Speciality Fulfilment leadership team we have in place, and we’re all looking forward to growing the business together with our two new members.”

TESCO VETERAN

In 2021, we reported that Hoggett was stepping down from the role of Tesco Chief Strategy and Innovation Officer to head up Amazon’s international stores arm.

In a note to staff, Tesco Chief Executive Ken Murphy wrote: “Tony’s career in Tesco has spanned over 31 years, during which time he has worked in various roles, most recently as Group COO and Chief Strategy and Innovation Officer.”

“Tony has made an incredibly valuable contribution over these years, and I wish him the very best for the future.”