Amazon will shutter all 19 of its Fresh supermarkets in the United Kingdom, marking a significant shift in its grocery strategy. The company announced the closures on Tuesday, citing a comprehensive review of its operations and a prioritization of the substantial growth potential of online grocery delivery. This decision comes after a period of expansion and experimentation in the UK grocery market, with the first Fresh store opening in London in 2021. Five of the existing Fresh locations are slated for conversion into Whole Foods Market stores.
The closure of the Fresh stores reflects a broader recalibration of Amazon’s global grocery ambitions. The company has already tempered the expansion of its Fresh and Go cashierless stores in the United States. This strategic refocusing suggests a prioritization of online grocery sales, particularly of “everyday essentials” such as canned goods and household supplies, an area Amazon’s CEO, Andy Jassy, has highlighted as a key to success.
This move contrasts with the initial aim of the Fresh format, which was to offer a more budget-friendly alternative to Whole Foods Market, Amazon’s upscale grocery chain acquired in 2017. Many Fresh locations incorporated Amazon’s innovative “Just Walk Out” cashierless technology. However, the company’s strategic emphasis has clearly shifted toward its robust online platform. Despite the UK Fresh store closures, Amazon’s commitment to the grocery sector remains strong.
Despite the closure of its physical Fresh stores, Amazon remains bullish on its grocery business. The company plans to launch same-day delivery of groceries, including perishable goods, in the UK starting next year. This initiative underscores Amazon’s ongoing investment in the online grocery market and its commitment to competing effectively in this sector. The closure of Fresh supermarkets represents a strategic repositioning, not a withdrawal, from the grocery business.
