Amazon is closing all of its Amazon Fresh grocery stores in the United Kingdom to shift its focus toward online delivery services.
In a statement on Tuesday, the e-commerce company announced it will shut down 14 stores and convert another five into Whole Foods Market locations. Amazon stated its goal is to “offer redeployment opportunities to as many affected employees as possible,” but did not specify how many jobs would be at risk.
The decision follows a “thorough evaluation” of its business operations, which identified “very substantial” growth opportunities in online delivery. The conversion of some stores leverages Amazon’s 2017 acquisition of Whole Foods, a supermarket chain that targets a more affluent clientele.
This move comes after Amazon has struggled to expand its physical grocery business in recent years. In 2023, the company revamped its US stores by adding more quick meal options and smart shopping carts to attract more shoppers. In the UK, its grocery delivery service has faced intense competition from established rivals such as Sainsbury’s, Ocado, and Tesco, particularly during the online shopping boom driven by the pandemic.
The closure marks a swift retreat from the UK’s physical retail market for the cashierless convenience stores, the first of which opened in 2021.
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