The supermarket revolution to fight off Amazon

Stores open juice bars and gyms to woo shoppers Plan to make millions renting out roof space

Britain’S biggest supermarkets are planning an overhaul of their stores – putting in juice and sushi bars, tyre-fitting services and gyms in a bid to fight off the threat from amazon.

the big names have seen numbers going to stores plummet so are desperately trying to encourage shoppers back as they embark on a war with online rivals and german discounters aldi and lidl.

it’s a war that is set to change the face of food shopping for good.

last week, shares in supermarkets plunged as amazon announced an £11bn takeover of organic chain Whole Foods.

While not a major presence in the uK, Whole Foods is a giant in the uS and it is feared the deal could be amazon’s next major assault on the groceries market.

last night the uS internet giant announced a second line of attack against major chains by launching a fashion business called Wardrobe, which will allow customers to try on clothes for free at home.

Currently, British supermarkets are thought to be most at threat from amazon outside the uS, as internet shopping has been growing rapidly and the online firm has already wheeled out its Fresh groceries service in london. Faced with this challenge, the supermarkets are planning to offer more than just groceries.

tesco has struck a deal with Dixons Carphone to open Currys PC outlets in its largest stores, and is understood to want to add Dorothy Perkins concessions.

Part of its plan to remain Britain’s biggest grocer is also to snap up wholesaler Booker for £3.7bn, putting it in more control over the prices of stock.

and to boost profits further it is expected to offer developers the chance to build flats on top of its shops – which it believes could add an extra £400m a year to its bottom line.

Sainsbury’s, which last year bought argos for £1.4bn and has already introduced a number of its collection points in stores, has put counters of cafe chain Patisserie Valerie in 12 of its stores. it is also trialling 20 shops which have sushi kitchens, and yesterday unveiled a tie-up with Crussh juice bars. the strategy of adding extra strings to its business has proved a success with argos sales at outlets in Sainsbury’s stores growing at between 20pc and 30pc – and grocery sales in those shops growing as much as 2pc.

it also gave Sainsbury’s access to argos’ delivery network to help it get goods to shoppers quickly – a crucial weapon in the fight against amazon.

and in further expansion plans, it will also give over space in stores to low-cost pay-as-you-go chain gym group. and it is hoping to clinch a deal to takeover 2,500 stores run by nisa for £130m.

Morrisons has introduced an indian takeaway into its Bradford store, allowing shoppers to order a curry while they shop or have their food delivered by Just eat.

and it will add tyre-fitting and coffee shops in its car parks, while key-cutting retailer timpson has moved into 150 stores.

Joanne Denney-Finch, chief executive of grocery researcher igD, said supermarkets need to be innovative to keep families coming in.