People walk past an Amazon Fresh store in Washington, DC, on August 26, 2021.
Nicholas Kamm | AFP | Getty Images
Amazon plans to close all of its Fresh supermarkets in the U.K., in the latest recalibration of its grocery strategy.
The company said in a Tuesday blog that it’s preparing to close all 19 of its Fresh U.K. stores, “following a thorough evaluation of business operations and the very substantial growth opportunities in online delivery.” Five of the Fresh locations are expected to be converted into Whole Foods stores, Amazon said.
Amazon opened its first Fresh location outside the U.S. in London in 2021, about a year after it debuted the store concept in the Woodland Hills neighborhood of Los Angeles. Fresh stores offer cheaper prices and more mass-market items compared to Whole Foods, the upscale supermarket chain Amazon acquired for $13.7 billion in 2017. Many of the stores also feature Amazon’s cashierless “Just Walk Out” technology.
The Fresh store pullback in the U.K. comes as Amazon has continued to adjust its grocery ambitions. The company has slowed expansion of its Fresh grocery chain and Go cashierless stores in the U.S. It still maintains 500 Whole Foods locations and has opened mini “daily shop” Whole Foods stores in New York City.
At the same time, Amazon CEO Andy Jassy and other company executives have touted the success of sales of “everyday essentials” within its online grocery business, which refers to items like canned goods, paper towels, dish soap and snacks.
Jassy told investors at the company’s annual shareholder meeting in May that he remains “bullish” on grocery, calling it a “significant business” for Amazon.
The company on Tuesday also said that it plans to offer same-day delivery of groceries, including perishable items, in the U.K. beginning next year.
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