Amazon is reportedly planning to shutter its 19 UK grocery stores, a move that comes less than five years after the tech giant launched the till-free retail locations in London.
According to Amazon, five of the stores slated for closure will be repurposed into Whole Foods Market locations, the organic and natural foods brand owned by Amazon.
The company has stated it will refocus its efforts on online grocery delivery services, including collaborations with partners such as Morrisons, Co-op, Iceland, and Gopuff.
Amazon has confirmed that approximately 250 employees are affected by the store closures, and the company has initiated a consultation process regarding the proposed changes.
The online retail giant first began scaling back its physical presence in 2023 with the closure of three Amazon Fresh stores in London.
The inaugural Amazon UK grocery store opened in Ealing Broadway in March 2021.
These stores allowed shoppers to enter, select their desired items, and exit without traditional checkout lines, with their Amazon accounts automatically charged using in-store camera technology and other identification systems.
Amazon cited a “thorough evaluation of business operations and the very substantial growth opportunities in online delivery” as the basis for its “difficult decision.”
John Boumphrey, UK Manager for Amazon, affirmed the company’s commitment to “continue to invent and invest” in the UK.
The company projects that, pending the success of its Whole Foods expansion plans, the UK will host 12 Whole Foods stores by the end of 2026.
Sucharita Kodali, an analyst at Forrester, commented, “I think that grocery everywhere in the world, including the UK is very competitive.”
“It’s unlikely that Amazon Fresh has created a differentiated offering and it may not even have ideal locations, so it’s probably not been set up well for success from the start.”
She added that Amazon “continues to be experimental,” frequently adjusting its grocery strategy, but “hasn’t quite figured out a successful” plan for its brick-and-mortar stores.
Danni Hewson, head of financial analysis at AJ Bell, noted that the till-less technology “always felt a little awkward.”
“Amazon’s strength is in convenience of delivery and it’s no surprise that as one door closes many more van doors are set to open, with the US firm announcing greater access to grocery for its prime members and plans to offer fresh goods via its online shop window from next year.”
All but one of the Amazon Fresh stores are located in London. However, the firm has not yet specified which locations will be converted into Whole Foods stores.
The GMB union, which represents a number of Amazon Fresh employees, issued a statement saying: “Considering Amazon are one of the richest companies in the world, the cavalier way in which they treat staff, and hire and fire them, speaks volumes about their ethics.”
“Frankly workers deserve better.”
Amazon has pledged to “offer redeployment opportunities to as many affected employees as possible.”
The company has a history of rapidly launching and discontinuing projects.
In 2024, Amazon halted its venture into business security monitoring robots after only nine months of operation.
Its diverse portfolio of businesses, spanning parcel delivery to streaming services, has led analysts to describe it as an “omnipresent” company.
The Amazon Fresh stores slated for closure are:
Evri apologies to customers after packages go missing in Hampshire.
Administrators say the business is “no longer viable to continue” trading and a sale is “unlikely”.
The chain’s owners blame a rise in operating costs and “changes in customer spending habits”.
The council says Wilko has been “demolished to make way for the new Cultural Quarter”.
Wolverhampton-based Pallet-Track reports a 44% rise in profit in its most recent accounts.