Key points
- Amazon will close all 19 of its Amazon Fresh grocery stores in the UK. Five stores will be converted to Whole Foods Market locations.
- The decision follows an evaluation of the business, with a focus on online grocery growth.
- Strong demand for online grocery delivery via Amazon.co.uk, with partnerships cited as a key factor.
- Amazon plans to expand same-day delivery of perishable groceries on Amazon.co.uk next year.
E-commerce giant Amazon announced Tuesday its plan to close all 19 of its Amazon Fresh grocery stores across the United Kingdom. The move comes less than five years after the company’s foray into the British grocery market, showcasing the challenges of competing in the highly competitive UK retail landscape.
While the “walk out” technology pioneered by Amazon Fresh in the UK, allowing customers to bypass traditional checkouts, was a technological leap, it ultimately wasn’t enough to ensure the physical stores’ long-term viability.
The company stated that the decision to close the stores was reached after a thorough evaluation of the business’s performance. Amazon highlighted its commitment to expanding its online grocery offerings as a key driver behind this strategic shift.
The company cited strong growth in online grocery sales through Amazon.co.uk, its Amazon Fresh online platform, Whole Foods Market, and its delivery partnerships with established UK grocers like Morrisons, Co-op, Iceland, and Gopuff.
To further solidify its commitment to online grocery dominance in the UK, Amazon revealed plans to introduce same-day delivery of perishable goods alongside everyday essentials on its main Amazon.co.uk platform next year.
This expansion aims to provide customers with a more comprehensive and convenient online shopping experience for groceries. This move signals a complete pivot towards online grocery, away from the brick-and-mortar model.
As part of the restructuring, five of the existing Amazon Fresh locations will be rebranded and converted into Whole Foods Market stores, the upscale American grocery chain that Amazon acquired in 2017. This conversion reflects Amazon’s continued investment in its Whole Foods brand and its strategy to leverage existing infrastructure for a more established and profitable brand within the UK market.
The closures will undoubtedly affect employees at the affected stores; however, Amazon has yet to release details regarding employee support and relocation efforts.
