Amazon UK sales growth slowed last year as retailers such as John Lewis and Dixons raised their game.

Accounts filed by its US parent firm show Amazon’s UK net sales rose 12.5% to $7.29bn last year, just over half the 21% growth delivered between 2011 and 2012.

Taking into account changes to the exchange rate, UK growth is estimated at 14% on a like-for-like basis, down from 22% in 2012 and 31% in 2011, according to the Evening Standard.

Retail analyst Nick Bubb said Amazon’s competition was getting stronger, particularly in electricals where Dixons had decided to price match with the online giant and John Lewis upped the convenience of its service through click-and-collect at its Waitrose stores.

Amazon has come under fire for tax avoidance because it processes sales in Luxembourg. It had a foreign tax bill last year of just $173m on $30bn of international sales.

In April last year a petition was handed in to 10 Downing Street signed by 160,000 people pressuring Amazon to pay corporation tax.

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