06-05-2025
Tesco and Amazon face tough competition from supermarket chain arriving in UK
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The UK retail scene is witnessing a noticeable influx of Chinese retailers, such as Temu, Shein, Ali Express, and TikTok Shop, drawing consumers in with their wallet-friendly prices and user-friendly platforms. Now China's biggest retailer by revenue which serves a customer base exceeding 600 million, is set to challenge the British market.
Food policy expert Gavin Wren provided his take on what this new entrant could mean for the industry. "A brand new supermarket that could challenge the biggest retailers in the country has just launched a trial website in London," he announced in a TikTok video.
With the roll-out of JD's initial venture into London, the stakes are raised with next-day delivery being an option throughout the city. Gavin says that shoppers can expect a "fascinating range" of merchandise, spanning various food types to a broad selection of non-food items.
"There's lots of food - whether it's frozen or chilled or store cupboard," he continued. "There's also cigarettes, homeware and baby stuff too. JD is known as Jingdong in China and they have the largest fulfilment infrastructure - i.e. delivery network - of any e-commerce company in China, these are big numbers."
Explaining their business strategy, Gavin revealed that JD guarantees a remarkable 90%of its orders reach customers on the same or next day. "They've also partnered with Morrisons so they already have hundreds of Morrisons' own-branded products," he explained. "So it's like Tesco - but with Amazon Prime delivery and they have some big-name retail executives working with them."
The expected nationwide rollout of trial site by the end of 2025 is generating mixed reactions among UK consumers. A concerned shopper commented, "My worry would be that if they are that big, they'll be selling at a loss for a while to force out the domestic competitors. Then, when they are the only player left they can raise the prices."
Meanwhile, another person pointed out: "The UK grocery market is pretty crowded already. Odd place to compete."
In contrast, one TikTok user endorsed the idea: "Anything that challenges the monopolies of current supermarkets price gouging us is good. Force them to lower prices."
Similarly, another individual supported the move, saying, "Fine with me. China is a far more reliable trading partner than the US ever was."
