The new scheme is being offered to Amazon Prime members using Amazon Fresh to order groceries. It will match product prices to Tesco Clubcard deals on everyday items such as meat and fish.
“We know that our customers are looking for ways to save on their weekly grocery shopping,” said Amazon Fresh Director Russell Jones.
The launch of the scheme comes at a time consumers in the U.K. are facing harsh economic conditions, which has made it imperative for retailers to offer competitive prices on their products, Reuters reported.
Tesco and Sainsbury’s, for example, have looked to offer competitive prices by price matching to German discount store chain Aldi.
Among the four major grocery retailers in the U.K., Tesco ranks at the top for offering the cheapest price points to its shoppers. Members of the company’s Clubcard loyalty program typically pay less than half for some 3,000 products in-store and online compared to non-members.
Overall, Tesco accounts for 27% of the market share in the country’s grocery industry. Amazon’s share, meanwhile, is unknown as the company does not share figures on grocery sales in the U.K.
Amazon is still reportedly required by the Competition and Markets Authority to comply with the Groceries Supply Code of Practice. The regulation is applicable to all retailers that reap more than £1 billion in annual grocery sales.