AMAZON CASHES IN ON CORONA

It takes 40% of extra web spending

AMAZON has taken 40p in every extra £1 spent online during the pandemic, MPs were told yesterday.

Shadow business minister Chi Onwurah told the Commons 40 per cent of the £5billion of new web spending has gone to the US giant.

The pandemic has left swathes of the high street battling for survival but sparked an online boom as consumers shift away from physical stores. Amazon – owned by £84billion Jeff Bezos, the world’s richest man – has been a major beneficiary.

Miss Onwurah said: ‘Of the £5billion of new online spend because of the pandemic, 40 per cent has gone to one website – Amazon.

‘Many small businesses are afraid they won’t make it through the winter because of the lack of Government

support and they have Brexit, climate and technological change to deal with too.’ She demanded the Government make ‘firm commitments’ to help small businesses through the crisis.

The figures appear to refer to a report in June by Edge Retail Insight, which predicted online sales would rise from £73billion to £78billion, with Amazon benefiting to the tune of £2billion. The report said this would take its annual UK sales to £31billion by the end of the year.

Amazon’s success will fuel calls for business rates, which unfairly target brick and mortar shops, to be reformed.

Helen Dickinson, chief executive of the British Retail Consortium, said: ‘The future remains bleak.’ Amazon declined to comment.