Amazon is set to close all 19 of its Amazon Fresh stores in the UK, a move that follows just four years after the launch of its first grocery outlet in London. Of these closures, five stores will be transformed into Whole Foods Market locations, showcasing Amazon’s shift toward a focus on its organic grocery chain acquired in 2017.
The initial Amazon Fresh store opened in Ealing, West London, in 2021, featuring a pioneering checkout-free shopping experience where customers used an app to enter the store and were charged automatically for items selected. Despite the innovative concept, the stores have struggled post-pandemic as the demand for contactless shopping waned and competition from established retail giants like Tesco and Sainsbury’s remained fierce.
While Amazon has not disclosed specifics regarding the impact on staff, it has expressed intentions to reassign affected employees to different roles within the company. This strategic closure aligns with Amazon’s broader revamp of its grocery operations, underscoring a stronger emphasis on the Whole Foods brand. Despite maintaining a degree of independence since its $13.7 billion acquisition, Whole Foods has seen increasing integration with Amazon, including expanded employee benefits and compensation programs.
In a bid to extend its reach in the UK market, Amazon announced plans to double the number of Prime members with access to at least three grocery options through partnerships with Morrisons, Iceland, Co-op, and Gopuff. Additionally, starting next year, UK shoppers will have the ability to purchase fresh groceries, meats, and seafood directly from Amazon’s website.
Amazon’s grocery endeavors have faced scrutiny under the Groceries Supply Code of Practice in the UK. In June, the Groceries Code Adjudicator initiated an investigation into allegations that Amazon was not adhering to timely payments for suppliers.
John Boumphrey, Amazon UK’s country manager, highlighted the company’s ongoing commitment to innovation and customer convenience, emphasizing the broad range of shopping options available to UK consumers through Amazon’s grocery platforms, including partnerships with local third-party partners.