Amazon launches price war against Tesco, Sainsbury's and Asda with over 4,300 grocery discounts

Amazon has launched a fresh supermarket price battle after cutting the cost of more than 4,300 grocery products across its Amazon Fresh range.

The online retail giant has reduced prices by an average of 16 per cent across roughly 45 per cent of its grocery selection as it steps up competition with Britain’s biggest supermarkets.

It places additional pressure on Tesco, Asda, Morrisons and Sainsbury’s as retailers continue battling for market share during a period of stubbornly high household costs.

The latest round of discounts applies across a wide range of products including baby items, bakery goods, drinks, fresh produce and frozen food.

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Amazon’s strategy signals a major push to position itself not only as a convenient shopping option but also as a low-cost alternative to traditional supermarkets.

Analysis by The Grocer magazine using Assosia pricing data showed Amazon Fresh is now matching or undercutting the major supermarkets on almost two-thirds of comparable grocery products.

That represents a sharp increase from two months ago when Amazon was the cheapest option on just 35.9 per cent of tracked items.

The analysis found Amazon now undercuts rivals on 64.9 per cent of comparable products.

More than one in five items were found to be exclusively cheapest through Amazon Fresh.

Retail analysts said the pricing strategy could intensify competition across the grocery sector and potentially trigger further discounting from established supermarket chains.

The move comes as households across Britain continue facing pressure from elevated food prices and wider living costs.

Amazon has focused heavily on everyday household essentials and frequently purchased grocery items as part of the pricing campaign.

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Industry figures said the strategy could encourage some consumers to shift parts of their weekly grocery shopping online, particularly for packaged goods and bulk purchases.

Many shoppers are still expected to rely on physical supermarkets for fresh produce and same-day purchases, although lower prices on cupboard staples could influence spending habits.

The latest price cuts also arrive at a difficult moment for the supermarket sector, with retailers already facing rising wage costs, supply chain pressures and tighter profit margins.

However, the company’s grocery business is reportedly growing at twice the pace of the wider business.

Almost one in three products purchased through Amazon’s UK platform are now food or household items.

The company is also continuing to expand its rapid delivery service, Amazon Now, which promises grocery deliveries in under 30 minutes.

At the same time, Amazon is facing scrutiny from the Groceries Code Adjudicator over concerns related to supplier payments.

In the regulator’s latest compliance rankings, Amazon remained at the bottom of the table.

The survey found 69 per cent of suppliers believed the company mostly complied with the Groceries Supply Code of Practice.

Supermarkets have faced growing pressure in recent years as retailers attempt to balance competitive pricing with rising operational costs and changing consumer shopping habits.

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