All Amazon Fresh grocery stores in UK set to close

Amazon plans to close all 19 of its grocery shops across the UK, putting as many as 250 jobs at risk.

The firm will look to convert up to five of the Amazon Fresh shops, noted for their walk-in walk-out style with no checkouts, into Whole Foods stores.

Amazon said the move is part of a wider overhaul of its UK grocery operations, which will shift focus more towards its online business. Its bosses have said that the firm is still “deeply invested” in the UK.

The US-based company said on Tuesday that it had launched a consultation process proposing the closure of the Amazon Fresh UK stores.

It is consulting with employees at the sites, which employ around 250 staff. However, it said not all employees are set to be affected by the closures, and it plans to offer those who are new roles in other parts of the business.

Recently, the company pledged to invest £40bn in Britain across the next three years.

The Fresh brand was first launched in 2021, opening its first till-less store in Ealing, with technology that allowed customers to walk out with their shopping without having to use a checkout. Shoppers used an app to enter the store and were then billed to the platform when they left, with a range of cameras and other technology used to work out which products they purchased.

However, the group slowed down significant growth ambitions for the business as shopper demand waned at the end of the coronavirus pandemic.

As part of the proposals, five shops could transition to Amazon’s Whole Foods Market brand, which focuses on organic produce. It said the conversion plan, along with two further new sites, is expected to grow the Whole Foods business to 12 stores by the end of next year.

On Tuesday, Amazon also said it plans to double the number of Prime subscription members with access to at least three of the retailer’s grocery options, through its partners Morrisons, Iceland, Co-op and Gopuff.

It also said it will introduce fresh groceries including dairy, meat and seafood to its website from next year.

John Boumphrey, country manager for Amazon UK, said: “Since 2008, we’ve worked hard to innovate to help our customers save time and money when shopping for groceries and household essentials.

“We continue to invent and invest to bring more choice and convenience to UK customers, enabling them to shop for a wide range of everyday essentials and groceries with low prices and fast delivery through Amazon.co.uk, Amazon Fresh, and Whole Foods Market stores, alongside our third-party grocery partners, including Morrisons, Co-op, Iceland, and Gopuff.”

Amazon is estimated to employ more than 75,000 people in the UK, the majority across its warehouse and delivery operations.

In future up to 2,000 new jobs could be created at new warehouses in Hull and Northampton.

It has been reported that Amazon Fresh contributed $5bn (£3.7bn) in revenues during one quarter in 2024, but this is across all grocery sales online and in physical stores, as well as being global rather than just UK-focused.

Amazon paid £1bn in UK taxes on revenues of over £29bn last year.

Last week, Amazon announced it would offer employees a pay rise above inflation levels, increasing its minimum wage to £14.30 an hour.