Amazon is set to close all 19 Amazon Fresh stores in the UK, four years after opening its first location in London. Five of the stores will be converted into Whole Foods Market outlets, the US organic grocery chain acquired by Amazon in 2017.
The Fresh stores operate without tills, using an app-based system and sensor technology to track purchases, but the model has struggled to gain traction as demand for contactless shopping declined following the pandemic. Amazon has not confirmed the number of staff affected but plans to redeploy employees within the company.
The closures form part of a wider shift in Amazon’s UK grocery strategy, with increased emphasis on Whole Foods. The company has extended corporate programmes, including pay and benefits, to integrate Whole Foods more closely into its operations.
Amazon also intends to expand access for Prime members to its grocery offerings through partnerships with Morrisons, Co-op, Iceland, and Gopuff. Online customers will be able to order fresh groceries, including meat, dairy, and seafood, from the Amazon website starting next year.
The business has faced regulatory scrutiny in the UK, with the Groceries Code Adjudicator investigating claims that Amazon failed to pay suppliers on time.