Amazon to close its UK grocery stores
Baku, September 24, AZERTAC
Amazon is planning to close its 19 UK grocery stores less than five years after it launched the till-free sites in London.
According to BBC, Amazon said five of the stores earmarked for closure would be converted in to Whole Foods stores, a fresh and whole food brand which Amazon owns.
The company added that it would focus on its online delivery services in the groceries sector, including with its partners Morrisons, Co-op, Iceland, and Gopuff.
Amazon said 250 staff worked at its stores and the company had launched a consultation process on its closure proposals.
The online retail giant began its first closure of the sites in 2023 when it shut down three of its Amazon Fresh stores in London.
Amazon opened its first UK grocery store in Ealing Broadway in March 2021.
Shoppers would walk in to the shops, pick up what they want, walk out and their Amazon account would be billed for the items on their Amazon account, which were identified using technology including in-store cameras.
Amazon said it had "made the difficult decision" after a "thorough evaluation of business operations and the very substantial growth opportunities in online delivery."
Amazon UK manager John Boumphrey said the firm would "continue to invent and invest" in the UK.
The firm added that if its Whole Foods expansion plans go ahead, it would have 12 Whole Foods stores in the UK by the end of 2026.
Sucharita Kodali, an analyst at Forrester, said: "I think that grocery everywhere in the world, including the UK is very competitive.
"It's unlikely that Amazon Fresh has created a differentiated offering and it may not even have ideal locations, so it's probably not been set up well for success from the start."
She said that Amazon "continues to be experimental", changing its grocery strategy every few months but that it "hasn't quite figured out a successful" plan for its stores.
Danni Hewson, head of financial analysis at AJ Bell, said the till-less technology "always felt a little awkward".
"Amazon's strength is in convenience of delivery and it's no surprise that as one door closes many more van doors are set to open, with the US firm announcing greater access to grocery for its prime members and plans to offer fresh goods via its online shop window from next year."
All but one of Amazon Fresh's stores are in London. But the firm has not confirmed which outlets will be converted to Whole Foods stores.
The GMB union, which has a number of members who work at Amazon Fresh stores, said: "Considering Amazon are one of the richest companies in the world, the cavalier way in which they treat staff, and hire and fire them, speaks volumes about their ethics.
"Frankly workers deserve better".
Amazon said it would "offer redeployment opportunities to as many affected employees as possible".
The company has a history of starting and ending ventures at speed.
In 2024, it stopped its venture into robots that monitored business security after only nine months of operation.
Its various businesses, including parcel delivery and streaming services, have led to analysts describing it as an "omnipresent" company.
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