Amazon is shutting down all 19 of its Amazon Fresh grocery stores in the UK, a decision that puts approximately 250 jobs at risk. This strategic shift comes as the company pivots towards online sales and increases its focus on the Whole Foods brand.
The US retail giant has confirmed the initiation of a consultation process with employees. While there is a possibility of redeployment within the business, many roles are likely to be impacted. Amazon Fresh, which launched in 2021, introduced its innovative “just walk out” technology, allowing customers to leave the store without checking out at a till. The system used an app for entry, with items tracked by cameras and sensors, automatically billing shoppers. Despite initial enthusiasm, growth decelerated as demand decreased post-pandemic.
Out of the 19 stores, five are slated for conversion into Whole Foods outlets, increasing the number of locations to 12 nationwide by the end of next year. Two additional Whole Foods stores are also planned.
John Boumphrey, Amazon UK country manager, emphasised the company’s continued investment in the British grocery market. He stated, “Since 2008, we’ve worked hard to innovate to help our customers save time and money when shopping for groceries and household essentials. We continue to invent and invest to bring more choice and convenience to UK customers, enabling them to shop for a wide range of everyday essentials and groceries with low prices and fast delivery through Amazon.co.uk, Amazon Fresh, and Whole Foods Market stores, alongside our third-party grocery partners, including Morrisons, Co-op, Iceland, and Gopuff.”
As part of its strategy, Amazon plans to double the number of Prime members with access to at least three of its grocery options. Additionally, fresh groceries, including dairy, meat, and seafood, will be available on Amazon.co.uk from next year.
This decision marks the latest in a series of retrenchments by Amazon in the realm of physical retail, following similar cutbacks in the US.
The 19 UK Amazon Fresh stores affected by this decision are located in Aldgate, Angel, Chingford, East Croydon, Euston, Holborn, Hounslow, Hoxton, Kensington, Liverpool Street, Moorgate, Monument, Notting Hill Gate, Southwark, Sevenoaks, Wembley, West Hampstead, White City, and Wood Wharf.
