Amazon (NASDAQ:AMZN) is planning to expand its online grocery shopping and delivery service in the U.K.
Online food retail is still one of the most underrepresented parts of digital retail, but Amazon believes it will work, especially as online shopping proved its worth at the close of 2015 when consumers spent $83 billion online during the holiday season, a 12.7 percent increase over last year.
According to data, North America and Western Europe represent two major strongholds for Amazon, reported Quartz. In Europe, Amazon employs about 40,000 people and plans to add several thousand more in 2016. Grocery delivery will be a major part of the marketplace's e-commerce strategy.
"When I look at Amazon, you've got a very sophisticated grocery market in the U.K., that I would argue is more advanced than it is in the U.S.," Charlie O'Shea, an analyst at Moody's, told Quartz. "We would expect the U.K. model to be more the model when expanding the grocery delivery business to larger continental cities."
At the center of the expansion will be its Prime membership, which grew by 3 million people over the week of Christmas, and now has permeated 38 percent of all households in the U.S.
-See this Quartz article
Amazon expands Prime Now in Chicago
Amazon Marketplace grew 40% on Cyber Monday
Amazon captures 50% of retail sales growth
Inside Amazon's urban warehouse
Amazon Fire sales are on fire