Amazon exits Fresh stores in UK putting 250 jobs in jeopardy

Highlights

• Amazon to close all 19 Amazon Fresh stores in the UK
  
• Five stores to be converted into Whole Foods Market outlets
  
• Shift focuses on online grocery partnerships with Morrisons, Co-op, Iceland, and Gopuff
  
• Closures coincide with challenges for UK high streets and upcoming business rates reforms
  

Amazon Fresh stores to close across the UK

Amazon has announced the closure of all 19 Amazon Fresh stores, ending its bricks-and-mortar grocery expansion in the UK. Around 250 jobs are at risk, though five stores will become Whole Foods Market outlets.

Focus shifts to online grocery operations

The company said it remains committed to the UK market but will concentrate on online services. Amazon partners with retailers including Morrisons, Co-op, Iceland, and Gopuff to deliver groceries across the country.

Till-less stores struggled to gain traction

Amazon Fresh launched in 2021 with technology allowing customers to enter via an app, pick up items, and leave without using a checkout. However, demand fell after the pandemic, slowing expansion plans.

High street pressures and business rate reforms

The closures come as UK high streets face potential reforms to business rates, which could impact thousands of stores. Tesco and Sainsbury’s have warned that a £1.7bn tax increase could accelerate the decline of physical stores, while the British Retail Consortium estimates around 4,000 shops may be affected.

Amazon supports affected staff

John Boumphrey of Amazon UK said the company would help employees affected by the closures, offering alternative roles wherever possible. He reaffirmed Amazon’s commitment to UK customers through online grocery and Whole Foods Market stores.