Amazon closes all Fresh stores in the UK: what will happen to customers.
According to The Sun: All 19 Amazon Fresh stores will close in the United Kingdom.
Amazon started consultations regarding the closure of these stores just four years after their opening.
Amazon Fresh stores allow customers to 'just walk out' with their items as payment is automatically chargedAmazon Fresh stores were positioned as a 'new convenient format for grocery shopping.'
Instead of the usual checkout process, customers can simply leave the store, and the 'Just Walk Out' technology will automatically process their payment.
However, plans to expand the chain with hundreds of new stores were halted due to insufficient success of this format.
This move is part of a broad overhaul of Amazon's grocery operations in the UK.
The American company announced that it wants to focus on its online business, but management assures that it will remain active in the UK.
Additionally, Amazon intends to convert five of these locations into Whole Foods stores.
Whole Foods, known in the U.S., has over 500 stores offering primarily organic products and fresh ingredients.
Amazon acquired Whole Foods in 2017 and plans to open 12 stores in the UK by the end of next year.
Currently, six Whole Foods stores have opened in the UK, all in London.
Amazon did not specify how many employees will be affected by the store closures.
However, the company plans to offer new job openings to employees who lose their jobs in other departments.
Moreover, Amazon announced plans to expand its online grocery business.
The company stated that it plans to add fresh products like dairy, meat and seafood to the Amazon website starting next year.
Amazon also hopes to double the number of Prime subscribers who will have access to three grocery options through its partners: Morrisons, Iceland, Co-op, and Gopuff.
John Bomfri, head of Amazon UK, stated: “Since 2008, we have been working on innovations to help our customers save time and money when shopping for groceries and essential items.”
“We will continue to invent and invest to provide greater choice and convenience for customers in the UK, allowing them to purchase a wide range of everyday items and products at low prices and with fast delivery through Amazon.co.uk, Amazon Fresh, and Whole Foods Market stores, as well as our partners.”
List of stores that will close
Here is a list of Amazon Fresh locations scheduled to close:
- Oldgate, Greater London
- Angel, Greater London
- Chingford, Greater London
- East Croydon, Greater London
- Euston, Greater London
- Holborn, Greater London
- Hounslow, Greater London
- Hoxton, Greater London
- Kensington, Greater London
- Liverpool Street, Greater London
- Morgate, Greater London
- Monument, Greater London
- Gate Notting Hill, Greater London
- Southwark, Greater London
- Sevenoaks, Greater London
- Wembley, Greater London
- West Hampstead, Greater London
- White City, Greater London
- Wood Wharf, Greater London
What happened to Amazon Fresh?
The first Amazon Fresh store opened in Ealing, West London, in 2021.
Subsequent new stores were opened in locations such as Wandsworth, East Sheen, Richmond, and West Hampstead.
The online giant hoped to open hundreds of Amazon Fresh stores across the country.
But the concept turned out to be less popular than expected, and stores have been closing over the past few years.
The flagship store in Ealing closed in July 2023, and Wandsworth and East Sheen closed in the same year. The store in Richmond closed earlier this year.
How other American brands are doing
While Amazon Fresh stores have not found success in the UK, other American brands are thriving.
In particular, the Denny's diner chain is preparing for a major expansion in the UK.
Denny's is known for its breakfast menu, featuring classic dishes like fluffy pancakes, eggs, bacon, and sausages.
Meanwhile, Wingstop, which has 72 locations in the UK, recently announced plans to open another 20 restaurants this year.
Carl's Jr opened its first store in the UK in Cardiff in April, with the capacity to serve up to 50 customers at a time.
Dave's Hot Chicken has partnered with Azzurri Group, which manages franchises such as ASK, Zizzi, and Boojum, to open 180 restaurants in Europe, including Portugal, Spain, and Germany.
Azzurri, which also operates franchises in the UK and Ireland, plans to open 57 more Dave's restaurants in the UK.
The Tex-Mex brand Velvet Taco will open its doors in London at Broadgate Circle in the coming weeks and has confirmed plans for several more locations in the UK in the future.
Popeyes already opened 33 outlets in the UK last year and plans to expand into cities such as Birmingham, Leeds, and Bristol, as well as opening new locations in Manchester, Liverpool, London, and Scotland.
The closure of Amazon Fresh stores reflects changes in the company's strategy, which aims to focus on more profitable segments of its business. The interest in physical stores has failed to compete with the evolving opportunities in online sales. Meanwhile, the success of other American brands in the UK shows that there is still high demand for variety and new formats in the food sector.
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