Amazon has announced plans to close all 19 of its Amazon Fresh grocery stores across the UK, putting up to 250 jobs at risk. The US retail giant said the move forms part of a broader overhaul of its UK grocery operations that will shift focus more towards its online business.
The company launched a consultation process on Tuesday proposing the closure of all Amazon Fresh UK stores. However, Amazon plans to convert five of these locations into Whole Foods stores, which focus on organic produce, while offering alternative roles within the business to affected employees.
Fresh brand struggles
Amazon first launched its Fresh brand in 2021, opening its inaugural till-less store in Ealing with revolutionary technology allowing customers to shop without using traditional checkouts. Shoppers used an app to enter stores and were automatically billed when leaving, with cameras and sensors tracking their purchases.
The ambitious expansion plans slowed significantly as consumer demand waned following the end of the coronavirus pandemic. The company had initially planned aggressive growth for the contactless shopping format but scaled back these ambitions.
Future grocery strategy
The five Whole Foods conversions, combined with two additional new sites, will expand that brand to 12 stores by the end of next year. Amazon also announced plans to double the number of Prime subscription members with access to at least three grocery delivery options through partners including Morrisons, Iceland, Co-op and Gopuff.
Fresh groceries including dairy, meat and seafood will be introduced to Amazon.co.uk from next year. John Boumphrey, Amazon UK's country manager, said: "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."
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
