Amazon to close its UK grocery stores

"Amazon is planning to close its 19 UK grocery stores less than five years after it launched the till-free sites in London. Amazon said five of the stores earmarked for closure would be converted in to Whole Foods stores, a fresh and whole food brand which Amazon owns. The company added that it would focus on its online delivery services in the groceries sector, including with its partners Morrisons, Co-op, Iceland, and Gopuff."

"Shoppers would walk in to the shops, pick up what they want, walk out and their Amazon account would be billed for the items on their Amazon account, which were identified using technology including in-store cameras. Amazon said it had "made the difficult decision" after a "thorough evaluation of business operations and the very substantial growth opportunities in online delivery." Amazon UK manager John Boumphrey said the firm would "continue to invent and invest" in the UK."

"Sucharita Kodali, an analyst at Forrester, said: "I think that grocery everywhere in the world, including the UK is very competitive. "It's unlikely that Amazon Fresh has created a differentiated offering and it may not even have ideal locations, so it's probably not been set up well for success from the start." She said that Amazon "continues to be experimental", changing its grocery strategy every few months but that it "hasn't quite figured out a successful" plan for its stores."

Amazon plans to close its 19 UK Amazon Fresh grocery stores less than five years after launching till-free sites in London. Five of the closing stores will be converted into Whole Foods outlets, with the company aiming for 12 Whole Foods stores in the UK by the end of 2026 if plans proceed. Amazon will prioritize online grocery delivery and partnerships with Morrisons, Co-op, Iceland, and Gopuff. The company said 250 employees worked at the stores and has begun consultations on closures after earlier 2023 shutdowns. Analysts say the UK grocery sector is highly competitive and Amazon Fresh has not established a clearly differentiated or successful store strategy.

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