Tesco: Supermarket set to be overtaken by Amazon as UK’s biggest retailer


Tesco is currently the largest retailer in the UK, but Amazon is fast overtaking the supermarket giant. Other top retailers in the UK, in regard to sales, are Sainsbury’s, Asda, and Morrisons.

In 2020, Tesco’s UK sales totalled £64billion, which were almost double Amazon’s sales at £36.6billion.

This currently makes Tesco the biggest retailer in Britain, closely followed by Amazon, then Saimsbury’s, Asda, and Morrisons.

However, all is set to change within the next four years.

For the first time in decades, it is expected that Tesco will be knocked off the top spot by an American company.

Additionally, it is predicted that Aldi will overtake Morrisons as the fourth largest retailer as the budget supermarket’s sales continue to grow.

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Amazon sales are set to hit £77billion by 2025, according to new research from Edge by Ascential.

Tesco’s sales are expected to increase too, but to £76.1billion.

Amazon’s success in the UK is down to people’s shopping habits having changed in recent years.

More and more Britons are now shopping online, and the pandemic seems to have spurred the trend on further.

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Jeff Bezos founded Amazon in 1994 from his garage in Washington, US, before launching the company in the UK in 1998.

After starting out as a bookseller, Amazon’s online presence has hugely grown in the UK, offering Britons same-day delivery, a vast range of products, and even a food range.

Three Amazon Fresh convenience stores already exist in the UK, and there are plans for more to open this year.

Natalie Berg, a retail analyst, commented on Amazon’s success, particularly during the pandemic.

She said: “Amazon scooped up trade for all the obvious reasons.

“It is ubiquitous, it’s easy to shop.

“They devoted decades to perfecting online shopping, so when stores were forced to shop it became the first port of call.

“They are hands down the undisputed winner of the pandemic. They are firing on all cylinders, they seem to be invincible. While the pandemic will have sounded the death knell for many retails, Amazon will come out stronger.”

However, UK supermarkets have worked hard during the past year to make grocery shopping easier for Britons.

Tesco recently introduced a faster delivery service to enable shoppers to receive their online orders within an hour.

This has helped the supermarket to respond to the surge in demand for digital shopping.

Edge by Ascential’s data showed that a third of all sales by UK retail chains are likely to be made online from 2025.

Deren Baker, CEO of Edge, said: “The UK is one of the largest retail markets in Europe, and a key market for many brands around the world.

“E-commerce is expected to grow in the UK over the next few years and this will be driven by digital marketplace giants like Amazon.

“Over the past year, Amazon has grown its online retail footprint in the UK and expanded into the high street with the launch of Amazon Fresh shops in London and a high-tech hair salon.”



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