Amazon has announced its intention to close or transform its Amazon Fresh stores situated on UK high streets, as part of a strategic adjustment. The announcement affects all 19 Amazon Fresh outlets in the UK, which are all located in London. According to a statement shared on its website, the retail giant plans to shut down 14 of these stores while converting five into outlets under the Whole Foods brand.
The decision comes after Amazon conducted a rigorous evaluation of its business operations, weighing the significant growth opportunities in online delivery against the in-person store model. Despite the potential closures, Amazon is committed to providing redeployment opportunities for affected employees wherever feasible. Additionally, the company is set to expand partnerships with prominent UK retailers like Morrisons, Iceland, and Co-op.
Amazon’s move aligns with its broader strategy of bolstering its online presence, exemplified by a previously announced £40 billion investment in the UK focused on building new fulfillment centers.
Danni Hewson, head of financial analysis at AJ Bell, attributes the closures to reduced customer footfall. While the stores featured innovative till-less technology, Hewson noted it often seemed awkward for shoppers adapting to the post-pandemic environment. She emphasized Amazon’s prowess in delivery convenience, highlighting the company’s plans to increase grocery access for Prime members and introduce fresh goods through its online platform in the coming year.
Many Amazon Fresh stores are concentrated in and around central London, reflecting a strategic focus that now shifts towards enhancing the online shopping experience for its customers.
This development underscores Amazon’s continuing evolution in response to changing consumer habits and preferences. With a focus on technological innovation and expanded delivery services, Amazon is poised to further integrate convenience and efficiency into its offerings for UK shoppers, while maintaining its competitive edge in the rapidly evolving retail landscape.