1. News
November 4, 2013

Amazon enters Canadian grocery business

Online retail giant Amazon has launched a new grocery category in Canada, ahead of the holiday season, in direct competition with the country’s supermarkets and grocers.

This move by Amazon is being seen as a direct competition against some of the country’s biggest grocers like Loblaws, Sobeys and Metro, which were busy competing against the top US retailers like Target and Walmart, till now.

As per reports, the new grocery category will initially offer 15,000 non-perishable grocery products, such as coffee, cereal and baby food, from a variety of brands like Campbell, Nestle, Pepsi, and Kellogg’s.

Amazon will not offer perishables like milk, fruits or vegetables in the initial run, with most of the food items to be shipped for free through the retailer’s two-day subscription service, Amazon Prime.

Amazon.ca country manager Alexandre Gagnon said the company is looking to grow its line-up of products.

"No one customer is the same, so our focus is on providing a broad selection of brands, so that customers can easily and instantly find and buy exactly what they are looking for," he said.

Canadian grocers have been facing intense competition as the market solidifies and the companies attempt to lower overall costs and increase buying power with manufacturers.