Amazon Closes UK Fresh Stores, Shifts Focus to Online Grocery Delivery

Amazon has announced its intention to close all Amazon Fresh stores in the United Kingdom and convert some of them into Whole Foods Market locations. This decision follows the realization that the concept of contactless shopping, which gained popularity during the pandemic, has not been widely accepted post-pandemic. The Amazon Fresh stores, which first opened in London in 2021, allowed customers to shop without needing to check out at a cashier. Instead, customers used an app paired with in-store cameras and sensors to track items taken from the shelves and automatically charge their accounts upon leaving the store. However, this innovative approach did not gain enough traction to pose a significant challenge to major UK supermarket chains like Tesco and Sainsbury's.

Amazon's strategy now focuses on expanding its online grocery delivery services. The company plans to invest in and innovate its online delivery options, leveraging its own delivery network and collaborating with other online delivery companies. By early 2026, Amazon aims to double the number of UK Prime members who have access to three or more online grocery options. This move is designed to capitalize on the growing preference of British consumers for online shopping and to strengthen partnerships with retailers such as Morrisons, Co-op, Iceland, and Gopuff. According to a study, the UK is expected to see 25% of its consumers opting for online grocery shopping by 2030, making it the third-largest online grocery market by sales volume.

As part of this strategic shift, Amazon will close 19 Amazon Fresh stores and convert five of them into Whole Foods Market locations. This expansion into the high-quality, natural, and organic food retail sector is expected to enhance Amazon's ability to deliver fresh, frozen, and baked goods, along with other products, with same-day delivery options planned for 2026. The company is also committed to both online and offline retail, as well as partnerships with local retailers and instant delivery services. Amazon plans to double the number of Prime members in the UK by early next year, with over 80% of Prime members expected to have access to at least one partner's fresh grocery delivery service.

Amazon has initiated consultations with employees to assess the impact of store closures and conversions on job positions. The company is committed to providing re-employment or reassignment opportunities within the company to affected employees. This strategic move is seen as an effort to optimize Amazon's overall retail and delivery operations, shifting resources towards online delivery as the primary focus.