Amazon has made the decision to close its 19 Amazon Fresh stores in the United Kingdom after evaluating its business operations and the state of the market. The marketplace plans to convert 5 of these stores into Whole Foods Market stores.
Amazon opened its first Amazon Fresh store in the United Kingdom in 2021. The marketplace expected its concept of checkout-free supermarkets with automated payment technology to attract the public by introducing a novel way to shop for fresh food, frozen products, and essential items.
However, in recent years, Amazon has faced challenges in driving this service forward, as contactless shopping lost momentum once the “pandemic effect” subsided, and it has not been able to compete with well-established supermarket chains. For this reason, it has ultimately decided to bring the project to an end.
Through a brief statement included within a broader press release, Amazon stated: “We’ve made the difficult decision to launch a consultation with employees regarding the proposed closure of our Amazon Fresh UK stores, following a thorough evaluation of business operations and the very substantial growth opportunities in online delivery. In case of closure, our goal is to offer redeployment opportunities to as many affected employees as possible.”
Now, Amazon will focus its efforts on expanding its online purchasing services and on developing Whole Foods Market stores, the American chain of organic supermarkets it acquired in 2017. For this latter goal, the marketplace will convert 5 of its Amazon Fresh stores into supermarkets under the Whole Foods Market brand. Its objective is to reach 12 Whole Foods Market stores in the United Kingdom by the end of 2026.
John Boumphrey, UK Country Manager at Amazon, stated: “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.”
This is not the first time the major marketplace has decided to end an offline initiative. In 2022, Amazon announced the closure of all 68 of its physical stores, Amazon Books, Amazon 4-Star, and Amazon Pop Up in the United States and the United Kingdom. These stores offered a selection of books, popular products from Amazon.com, and items from small businesses.
Likewise, it has also closed some of its Amazon Go stores, especially in the United States. These stores are based on the “Just Walk Out” concept, offering a queue-free and checkout-free experience, as customers are required to scan the Amazon app and link it to their user account upon entry, which is then recorded. Amazon Go once reached more than 500 locations at its peak and currently has approximately 20 stores.
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