Amazon plans to close all of its Fresh supermarkets in the U.K., marking the latest recalibration of its grocery strategy. The company announced in a blog post on Tuesday that it is preparing to shut down all 19 of its Fresh U.K. stores, a decision that followed a “thorough evaluation of business operations and the very substantial growth opportunities in online delivery.” Amazon stated that five of the Fresh locations are expected to be converted into Whole Foods stores.
Amazon opened its first Fresh location outside the U.S. in London in 2021, about a year after the store concept debuted in the Woodland Hills neighborhood of Los Angeles. Fresh stores typically offer cheaper prices and more mass-market items compared to Whole Foods, the upscale supermarket chain Amazon acquired for $13.7 billion in 2017. Many of the Fresh stores also feature Amazon’s cashierless “Just Walk Out” technology.
A Broader Recalibration of Grocery Strategy
This pullback from Fresh stores in the U.K. is part of a broader adjustment to Amazon’s grocery ambitions. The company has also slowed the expansion of its Fresh and Go cashierless stores in the U.S. It still maintains 500 Whole Foods locations and has opened smaller “daily shop” Whole Foods stores in New York City.
At the same time, Amazon CEO Andy Jassy and other company executives have touted the success of sales of “everyday essentials” within its online grocery business, which refers to items like canned goods, paper towels, and snacks. Jassy told investors at the company’s annual shareholder meeting in May that he remains “bullish” on grocery, calling it a “significant business” for Amazon. The company also said it plans to offer same-day delivery of groceries, including perishable items, in the U.K. beginning next year.
Author’s Opinion
The decision to close all Fresh stores in the UK is a pragmatic retreat from a physical retail strategy that was proving difficult to scale. Amazon’s core strength has always been in logistics and online delivery, and this move signals a renewed focus on what it does best. By converting some locations to Whole Foods and prioritizing same-day online delivery, Amazon is not abandoning the grocery market but rather consolidating its physical presence to its more upscale brand and doubling down on a more capital-efficient online model. This shift suggests that for Amazon, the path to grocery dominance lies not in a broad, expensive network of brick-and-mortar stores, but in leveraging its unparalleled delivery infrastructure to serve customers’ needs more directly.
Featured image credit: Wikimedia Commons
For more stories like it, click the +Follow button at the top of this page to follow us.