Simply Business - Insurance for your business

Call Us0333 0146 683
Our opening hours
Knowledge centre

Could Amazon’s High Street store spell problems for small retailers?

1-minute read

Could Amazon’s High Street store spell problems for small retailers?
Josh Hall

Josh Hall

15 February 2017

Online retail giant Amazon has begun a hunt for London High Street retail space as it launches its expansion into bricks and mortar.

The American company has started to search for shopfronts in prime London locations as part of its move towards physical stores. It recently opened its first such outlet in San Francisco.

The shift in strategy will see Amazon offering cashier-free grocery shopping for consumers in the capital. Purchases will be tracked by sensors, and items will be billed to customers’ Amazon payment accounts as they leave.

Margins squeezed

But the move could cause consternation for small retailers, who have already been buffeted by the impacts of online shopping.

Meanwhile supermarket giants including Tesco have seen their bottom lines squeezed by both Amazon’s move into groceries and the encroaching of European chains like Lidl, which offer heavily discounted items.

Amazon already offers delivery services for food and groceries in some parts of the capital and many areas of the States, and its Dash buttons - physical buttons that are sent to users to press whenever they're out of a certain product - aim to take some of the friction out of repeat orders for items like dishwasher tablets.

Online impact

The impact of the internet has already been felt on the UK’s small shops. It is now estimated that more than half of UK consumers do the majority of their holiday season shopping online, and the figure is rising for day-to-day purchases.

Meanwhile, according to figures released in 2015, just 6 per cent of UK consumers planned to increase the number of in-store purchases they made during the year.

Are you worried about Amazon moving to bricks-and-mortar shops? Let us know in the comments

All set with retail insurance?

As the UK's biggest business insurance provider, we protect more shops, trades and retailers than anybody else for the likes of public liability insurance and more. Why not take a look now and build a quick, tailored shop insurance quote?

Check your cover

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.


People also liked

Landlords could be targeted in new capital gains tax raid.

19 November 20202-minute read

Landlords could be targeted in new capital gains tax raid

Landlords could be hit by another massive tax raid, as the Office of Tax Simplification outlines its recommendations for an overhaul of…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.