A new online grocery player looking to go head to head with the major mults on branded groceries has gone live as of this week.
Bulk-buy club BuyMucho promises savings of up to 50% on branded goods. A test launched in London’s non-Congestion Charge zone and the Home Counties on Monday.
BuyMucho carries 1,149 ambient SKUs and compares its prices against Tesco, Sainsbury’s, Asda, Morrisons, Waitrose and Ocado. It charges an annual membership fee of £24, but this does not have to be paid until customers have saved £48 compared against their “usual” supermarket.
Members name their “usual” supermarket when they register, but can change it at any time. There is a minimum order of £100; delivery is free of charge.
Savings cited by BuyMucho at launch included Blossom Hill Pinot Grigio priced at £28.99 for a case of six - which it said made it more than 30% cheaper than Asda; and Dettol at £16.90 for a case of 12 -which it claimed was 43% cheaper than Tesco.
The business does not offer frozen and fresh food, though it says it would be “happy to review this” if there was sufficient demand.
Jamie Burke and David Smith, who run the company, will hold supplier meetings over the next few weeks. Marketing will kick off next week, with search-based and pay-per-click marketing as well as targeted ads on Facebook and Twitter.
More than 20 high net-worth individuals, including ex-bankers from JP Morgan and Jamie Wood, son of Rolling Stone Ronnie Wood, have provided seed investment. Burke said the plan was to raise funds next year from venture capitalists.
The business does not have its own warehousing, though Smith did not rule this out. He declined to name its wholesale distributor.