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Amazon to Shut All 19 UK Grocery Stores, Shifts Focus to Online

Amazon to Shut All 19 UK Grocery Stores
Image Source: By Getty Images

Amazon is closing its 19 UK grocery stores, less than five years after launching its checkout-free retail experiment in London.

Whole Foods Expansion Plans

The tech giant confirmed that five of the sites earmarked for closure could be converted into Whole Foods outlets, the upmarket grocery chain it owns. If approved, the move would expand Whole Foods’ UK presence to 12 stores by 2026.

Focus Shifts to Online Delivery

Amazon said it would now concentrate on online grocery deliveries, where it has partnerships with Morrisons, Co-op, Iceland and Gopuff. The company has launched a consultation process with staff about the closures.

From Ealing to Exit

The first Amazon Fresh shop opened in Ealing Broadway in March 2021. The stores relied on “just walk out” technology, where cameras and sensors tracked shoppers as they picked up items, charging them automatically via their Amazon account.

But despite the hype around the concept, the rollout never extended beyond London, and the company began shutting locations in 2023.

Company Statement

John Boumphrey, Amazon’s UK country manager, said:

“We’ve made the difficult decision to close our grocery stores in the UK after a thorough review of our operations. Our focus now is on online grocery, where we see the greatest opportunity to grow.”

Struggles in a Competitive Market

The decision marks a significant scaling back of Amazon’s push into bricks-and-mortar food retail in Britain. It reflects the challenges of competing in an already crowded grocery market dominated by the big four supermarkets and budget chains Aldi and Lidl.

Analysts say Amazon’s strength remains in delivery rather than physical shops, particularly as more households turn to online services for weekly groceries.

Looking Ahead

If its Whole Foods expansion goes ahead, Amazon will aim to target a different customer base — wealthier shoppers seeking fresh produce and premium ranges.

For now, the company is keen to stress it is not retreating from food retail entirely. “We’ll continue to invent and invest in the UK,” Boumphrey said.

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