October 31, 2013

Amazon launches online grocery store in Canada

CANADA--Amazon is dipping its toe into Canada's already-crowded grocery market as it starts offering groceries on its popular online store in an effort to compete with Wal-Mart and traditional grocery stores.

The online retail giant has launched a grocery and gourmet food section of its website, offering 15,000 dry food items, including packaged beverages, breakfast foods, pantry supplies and snacks.

The store features brands including Pepsi, Kellogg, Nestle and Campbell's Soup, as well as baby food and a variety of natural and organic products.

Amazon is using the store as a way to promote its Amazon Prime service, which guarantees free two-day shipping with an annual fee of $79.

The company has also added Office, Toys and Auto departments to its Canadian site.

Competition has been heating up  Canada's grocery market this year, with expansion by U.S. companies like Wal-Mart hitting sales growth and forcing Canadian companies like Metro to rethink their strategy.



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