Amazon secures foothold in French grocery market with Monoprix deal
Ecommerce titan Amazon has secured a major push into the French grocery market with a new agreement to deliver groceries from one of the country’s biggest supermarket chains. Monoprix, owned by Casino Guichard Perrachon SA, is in fierce competition with rivals Carrefour and Leclerc to gain control of the French grocery market. But now, the brand’s goods can be purchased via Amazon’s Prime Now service in “Paris and the surrounding regions”.
Amazon’s share price has appreciated by 80% over the past 12 months
SOURCE: Yahoo Finance
According to both companies, the agreement is “highly complex” but “90% focused on food.” It’s a big step for Amazon in control of a market comprising some 67 million people, and where its service on things like next day delivery fall behind its U.S. offerings.
It’s also a concerted move forward in its grocery delivery push. In the U.S., Amazon made headlines when it purchased Whole Foods Market Inc., giving it access not only to a pre-existing fresh foods network, but also a brick-and-mortar outpost in the retail world. It followed that up with an agreement with Wm Morrison Supermarkets Plc in the UK, and a number of smaller operations elsewhere.
France’s population is roughly equivalent to that of California and Texas combined, and the country is famous for its high quality food and focus on fresh produce. As big players like Carrefour look to get more Ecommerce-savvy and competition heats up, Amazon will have its work cut out for it in this important European market.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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