Amazon is planning to be the UK’s biggest retailer by 2025

New pandemic effects keep cropping up around the world every day. For the United Kingdom, Amazon’s big boost in the UK retail market is another one of these effects.

Research gathered by Edge Retail Insight is showing that by 2025, Amazon will have successfully displaced Tesco as Britain’s biggest retailer. By the end of the next four years, Amazon’s total sales in the UK is predicted to be 77 billion pounds. In the same period, forecasters say Tesco will fall 1 billion pounds short of Amazon sales revenue.

There is little doubt that since its entrance to the UK in 1998, Amazon has long planned for dominance in the UK retail market — a position long held by Tesco. By 2025, Amazon will surely be satisfied with how far it has come and how it has repaid the trust of all those who invest in Amazon shares.


Contesting with Britain’s biggest retailers

The UK retail sector is super-competitive and high earning. Many big global brands form part of the top 10 UK retailers. For context, the biggest UK retailers include; Tesco, Sainsbury’s, ASDA, Morrisons, Amazon, Aldi, Mark and Spencer, Boots and Lidl.

Amazon has found ways to set itself apart from its competitors. Amazon has been credited with redefining online shopping in the UK by providing speedy delivery and an expansive product selection. Amazon is superbly convenient to use and that is precisely the reason why it is dominating the online sales market. By 2025, Amazon is predicted to be responsible for one-third of entire online sales in Britain.

For Amazon, there’s still a long way to go to ensure that the forecast works out. At the end of 2020, Tesco’s gross sales amounted to 64 billion pounds, which is almost double of Amazon’s 34 billion pounds gross sales. 

As far as the fresh (groceries) category is concerned, Amazon has got some work to do. Despite a 17.6% growth in foods, fruits and vegetables in 2020, Amazon is quite slow-paced, especially when comparisons are made with other UK retail giants.

Amazon recently opened three grocery shops — AmazonFresh shops — in London. This is generally construed to be a step in the right direction to market leadership in the coming years.


The pandemic’s contribution

When the pandemic reached its peak in 2020, online and digital activities grew. Businesses like Amazon who already had strong online business models were able to adjust faster than others to newer consumer trends.

Amazon had long been building its system for online shopping and so when people could not physically shop, the UK retail choice that had a ready-made system for online shopping became the obvious top choice,

Data provided by Edge suggests that the online shopping spree is not likely to be dampened by the pandemic’s end. At least a third of all sales by UK retail chains is expected to happen online. Online sales — currently at 107 billion pounds — is forecasted to rise to up to 176 billion pounds by 2025. More great news for Amazon.

The next five years for the UK retail sector will reasonably see more growth in online shopping. Online marketplaces like Amazon are perfectly primed to grow revenue by providing easy and affordable retail services to consumers. 

For Amazon, 2025 can not come soon enough.