Amazon to Shut Down All Amazon Fresh Stores in the UK, Shifts Focus to Online Grocery

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Amazon to Shut Down All Amazon Fresh Stores in the
The exterior of an Amazon Fresh grocery store is seen on December 12, 2024 in Federal Way, Washington. David Ryder/Getty Images/Getty Images

Amazon will shut down all 19 of its Amazon Fresh stores in the United Kingdom as it shifts focus entirely to online grocery services, the company announced Tuesday.

The closures follow a "thorough evaluation" of Amazon's retail operations in the UK and come just three years after its first Fresh store opened in London in 2021.

Of the 19 stores, five are set to be converted into Whole Foods Market locations, which Amazon acquired in 2017 for $13.7 billion.

"In case of closure, our goal is to offer redeployment opportunities to as many affected employees as possible," the company said in a statement, CNN reported. However, Amazon has not yet confirmed how many jobs may be impacted.

This move reflects Amazon's changing grocery strategy, as it focuses more on online delivery and pulls back from physical retail stores.

The company said it sees "very substantial growth opportunities" in online grocery, including plans to offer same-day delivery of fresh and frozen groceries in the UK starting in 2026.

Amazon Halts UK Grocery Stores, Bets on Online Sales

According to CNBC, Amazon Fresh stores were originally launched to provide convenient shopping options, featuring smart carts and cashier-free "Just Walk Out" technology.

But the stores have struggled to compete with established UK supermarkets like Tesco, Sainsbury's, and Ocado, particularly during and after the pandemic-driven surge in online grocery orders.

The decision to exit the UK's physical grocery market is part of a larger trend at Amazon. In the US, the company has also slowed the expansion of its Fresh and Go store formats.

However, Amazon continues to operate around 500 Whole Foods Market stores across the US and is even testing smaller "daily shop" versions of Whole Foods in New York City.

Amazon CEO Andy Jassy has repeatedly expressed confidence in the company's long-term grocery strategy.

Speaking at the company's annual shareholder meeting in May, Jassy called grocery a "significant business" and highlighted strong online sales of everyday items like snacks, canned food, and cleaning supplies.

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