Amazon is set to close all 19 of its Fresh supermarkets in the United Kingdom as part of a strategic shift in its grocery operations. This decision, announced in a company blog, follows a comprehensive assessment of Amazon’s business operations and places a renewed emphasis on expanding opportunities in online grocery delivery services. Although the Fresh stores will cease operations, five of these locations are planned to be transformed into Whole Foods stores, adding new dimensions to Amazon’s grocery offerings in the U.K.
Amazon first introduced its Fresh supermarket concept in the U.K. in 2021, starting in London, following its initial launch in Los Angeles in 2020. The Fresh stores provided more affordable prices and a broader range of mass-market products in comparison to the premium Whole Foods brand, which Amazon acquired in 2017 for $13.7 billion. Additionally, several Fresh outlets incorporated Amazon’s innovative “Just Walk Out” cashierless technology, highlighting Amazon’s drive for retail innovation.
This move in the U.K. forms part of Amazon’s broader recalibration of its grocery strategy. In the U.S., Amazon has been cautious in expanding its Fresh and cashierless Go store formats, indicating a strategic pivot towards solidifying its dominance in online retailing. Despite this, Amazon continues to operate 500 Whole Foods locations and has expanded the concept with smaller “daily shop” versions of Whole Foods in New York City.
Amazon’s decision to close its Fresh supermarkets in the U.K. reflects its ongoing evaluation of how best to serve its customer base while leveraging its strengths in online commerce. By transitioning some Fresh locations to Whole Foods stores, Amazon reinforces its commitment to providing high-quality grocery experiences, albeit with an evolved business model. This strategic approach underscores Amazon’s adaptability in the fast-evolving retail landscape, continuously seeking optimal ways to meet consumer needs.