TLDR
- Amazon will close all 19 Amazon Fresh UK stores less than five years after launch
- Five locations will convert to Whole Foods Market stores instead of closing completely
- Amazon Fresh pioneered “walk out” checkout-free technology in Britain
- Company cites strong online grocery demand as reason for shift away from physical stores
- Amazon plans to add perishable groceries to Amazon.co.uk with same-day delivery next year
Amazon announced Tuesday it will close all 19 of its Amazon Fresh convenience stores across the UK. The decision comes less than five years after the retail giant entered the British grocery market with its checkout-free technology.
The company said it made the difficult choice after evaluating the business performance. Amazon cited substantial growth opportunities in online delivery as the primary reason for the closure.
Amazon Fresh stores introduced “walk out” technology to Britain. Customers could pick up groceries and leave without going through a traditional checkout line.
The stores sold household items and groceries, including Amazon’s own “by Amazon” brand products. The technology used cameras and sensors to track what customers took from shelves.
Five of the 19 locations will avoid permanent closure. These stores will convert to Whole Foods Market locations instead.
Whole Foods is the premium grocery chain Amazon purchased in 2017 for $13.7 billion. The conversion represents Amazon’s continued investment in the Whole Foods brand.
Shift to Online Focus
Amazon reported strong demand for groceries through its existing online channels. The company sees growth in its Amazon.co.uk store, Amazon Fresh online service, and Whole Foods Market.
The tech giant also highlighted success with delivery partnerships. It works with UK retailers including Morrisons, Co-op, Iceland, and Gopuff for online grocery delivery.
Amazon plans to expand its grocery offerings on its main UK website next year. The company will add perishable groceries alongside everyday essentials and other products.
Future Grocery Strategy
The new service will offer same-day delivery for perishable items. This represents Amazon’s push to compete more directly with traditional grocery delivery services.
The closure affects employees at all 19 locations across the UK. Amazon has not disclosed the exact number of workers impacted by the decision.
The company first opened its UK Amazon Fresh stores in 2021. The stores were part of Amazon’s broader push into physical retail following its Whole Foods acquisition.
Amazon Fresh stores operated in major UK cities including London. The checkout-free technology was seen as innovative when first introduced to British consumers.
The decision reflects Amazon’s strategy to focus resources on areas with the strongest growth potential. Online grocery delivery has shown more promise than the physical Fresh store format in the UK market.
Amazon will continue operating Amazon Fresh stores in other markets including the United States. The closure applies only to the UK operations of the convenience store format.
