Amazon To Close All UK Fresh Stores In Major Grocery Market Shake-Up

Amazon is preparing to shut down its entire UK network of Amazon Fresh stores, just four years after opening its first high-tech grocery shop in London.

The US technology giant will close all 19 Fresh outlets, with five set to be converted into Whole Foods Market stores – the organic grocery chain Amazon acquired in 2017.

Amazon launched its first Fresh shop in Ealing, west London, in 2021. The tills-free format allowed shoppers to walk out with their groceries without scanning items, with payments automatically processed via the Amazon app. Cameras and sensors tracked what customers picked up in store – a concept hailed as revolutionary at the time.

However, the format struggled to gain traction after the pandemic, as consumer demand for contactless shopping waned. The stores failed to mount a serious challenge to the UK’s established grocery giants Tesco and Sainsbury’s.

Amazon has not confirmed how many staff will be impacted by the closures but said employees would be offered roles in other parts of the business. The decision forms part of a wider rethink of its grocery strategy, with a stronger emphasis now on its Whole Foods Market brand.

While Whole Foods has operated with a degree of independence since its $13.7bn (£10.7bn) acquisition, Amazon has been tightening control. This summer, it extended its corporate pay and benefits programmes to Whole Foods’ US staff, a step towards further integration of the chain.

At the same time, Amazon is seeking to expand its online grocery offer in the UK. On Tuesday, the company said it aimed to double the number of Prime members with access to at least three grocery options through partnerships with Morrisons, Iceland, Co-op and delivery service Gopuff. From next year, UK shoppers will also be able to buy fresh groceries – including dairy, meat and seafood – directly via the Amazon website.

The company’s grocery operations are also under scrutiny from regulators. In June, the Groceries Code Adjudicator launched an investigation into Amazon following complaints that suppliers were not being paid on time.

John Boumphrey, Amazon UK 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.”