Amazon is set to see its UK arm continue to grow exponentially over the next five years, seeing national retail revenue hit £15.7 billion by 2024.
According to data and analytics giant GlobalData’s latest report, the ecommerce giant’s UK arm will grow 58.2 per cent in the next five years, driven largely by a dramatic expansion in its food and grocery arm.
The report predicts that its food and grocery arm will grow a whopping 174.7 per cent between 2019 and 2024, dramatically outpacing the 15.5 per cent growth forecast for the wider grocery sector in the same period.
“Although food has not historically been a focal point for the online pureplay, it will prioritise investment in this sector through ramping up its Amazon Fresh operation, developing Whole Foods and introducing its checkout-free Amazon Go stores,” GlobalData’s retail analyst James Yacoub said.
“Overall Amazon will grow its total online market share to 19.8% in 2024, up from 16.6% in 2019.”
Amazon is also set to streamline its operations in the UK by investing heavily in automation, fulfilment centres and transport vehicles.
“Amazon has invested in the latest thematic trends in retail from the onset of its growth, with a particular focus on its delivery infrastructure, artificial intelligence and automation,” Yacoub added.
“Prime’s success has been made possible by Amazon’s focus on last mile fulfilment, and 19.4% of UK online shoppers are now Prime subscribers. Amazon will continue to optimize its efficiency in its last mile delivery which remains to be the most costly aspect of fulfilment”.