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Amazon has announced its decision to close all 19 of its UK grocery stores, a mere five years after the launch of its till-free sites in London. The company revealed that five of the stores slated for closure will be transformed into Whole Foods stores, a brand specializing in fresh and whole foods that Amazon owns. Amazon emphasized that it will shift its focus to online delivery services in the groceries sector, collaborating with partners such as Morrisons, Co-op, Iceland, and Gopuff. Additionally, the company stated that 250 staff members are currently employed at its stores, and it has initiated a consultation process regarding its closure proposals.
The closure process began in 2023 when Amazon shut down three of its Amazon Fresh stores in London. The first UK grocery store was opened in Ealing Broadway in March 2021, allowing customers to enter the shops, select items, and leave with their Amazon accounts being automatically charged for the purchases made through the use of in-store cameras and technology. Following a comprehensive evaluation of its business operations and growth opportunities in online delivery, Amazon made the “difficult decision” to close its physical grocery stores. Amazon UK manager, John Boumphrey, affirmed the company’s commitment to innovation and investment in the UK, indicating potential plans for the expansion of Whole Foods stores in the country.
Analyst Sucharita Kodali from Forrester expressed skepticism about Amazon Fresh’s competitive standing in the UK grocery market, highlighting challenges related to differentiation and location strategy. She noted Amazon’s experimental approach and frequent changes to its grocery strategies without achieving a successful store model. Despite the closure announcement, Amazon has not disclosed which existing outlets will be converted into Whole Foods stores. In response to the decision, the GMB union representing some employees criticized Amazon’s treatment of its staff and urged for better employment practices to be implemented.
Amazon’s swift business decisions are evident in its history of venturing into and concluding projects rapidly. In 2024, the company discontinued an initiative involving robots used for business security monitoring after a mere nine months of operation. With a diverse array of services including parcel delivery and streaming, Amazon has been regarded as an omnipresent entity by analysts
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