Local supermarkets face competition as internet giant Amazon launches its food service, Pantry, with the number of people buying food online increasing each year

Supermarkets have been warned to prepare for fierce competition by Amazon Pantry, a home grocery delivery service of the internet giant. The service is already a hit in the US and UK and is now available in France and Belgium through the company's French website.

According to Gino Van Ossel, a retail expert at Vlerick Business School, “it is certainly a threat to our supermarkets”.

One problem faced by local retailers is price. For example, one litre of cola sells on Amazon for €1.15, whereas Collect & Go – a division of Colruyt – sells the same bottle for €1.57. Pantry costs €49 for a year’s subscription, plus €3.99 per delivery, while local supermarkets charge twice that much or more for home delivery.

“Amazon has experience with e-commerce, whereas most Belgian players are not ready for major competition in that area,” Malaika Brengman, a retail expert from the Free University of Brussels (VUB), told VRT. “Belgian supermarkets, be prepared for the worst.”

Only 9% of Belgians bought food online last year, according to retail federation Comeos, but the proportion is growing each year.

Photo courtesy Amazon

This story was updated with information about where to find Pantry on 14 March

