Why is Amazon closing its Fresh stores in the UK?
Amazon is closing its Fresh stores to focus on expanding its online grocery delivery services, which have seen significant growth and customer demand.
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Retail / Grocery
Amazon UK Grocery Strategy Shift: Focus on Online Delivery, Fresh Store Closures
Amazon is recalibrating its grocery strategy in the UK, opting to close all of its Fresh grocery stores while significantly expanding its online grocery delivery services. This move reflects a growing trend of online grocery shopping in the...
Key Insights
- Amazon plans to close all 19 of its Fresh UK stores, with five potentially converting to Whole Foods Market locations.
- The company will expand online grocery delivery options, aiming to reach over 80% of UK Prime members through partnerships with Morrisons, Co-op, Iceland, and Gopuff. **Why this matters:** This shift indicates a move towards meeting customer demand for online convenience and faster delivery speeds.
- Amazon plans to introduce perishable groceries on Amazon.co.uk with Same-Day Delivery in 2026, mirroring a recent launch in the US. **Why this matters:** This enhancement will provide customers with a wider range of grocery items available for immediate delivery.
- UK online grocery shopping is on the rise; Britons are expected to conduct over 25% of their food spending online by 2030. **Why this matters:** Amazon is positioning itself to capitalize on this growing trend.
In-Depth Analysis
Amazon's decision to close its Fresh stores in the UK comes after a thorough evaluation of its business operations and recognition of the substantial growth opportunities in online delivery. The company opened its first Fresh location outside the U.S. in London in 2021, offering cheaper prices and more mass-market items compared to Whole Foods. However, the expansion of Fresh stores has slowed down, and the focus has shifted to online channels.
Amazon's online grocery business has seen significant growth, with everyday essentials representing nearly one out of every three units sold on Amazon.co.uk in the first quarter of 2025. To meet customer demand, Amazon plans to more than double the number of UK Prime members who have access to three or more online grocery delivery options through its partners.
The company is also investing heavily in delivery speeds, offering Same-Day and One-Day delivery on many items. In 2026, Amazon plans to introduce perishable groceries alongside millions of everyday essentials on Amazon.co.uk with Same-Day Delivery, providing customers with fresh produce, dairy, meat, and seafood within hours.
This strategic shift aligns with the increasing popularity of online grocery shopping in the UK. According to a report from PwC’s Strategy&, Britons are expected to conduct over 25% of their food spending online by 2030. Amazon's focus on online delivery and partnerships positions it to capture a significant share of this growing market.
FAQ
What will happen to the employees of the closing Fresh stores?
Amazon aims to offer redeployment opportunities to as many affected employees as possible.
When will Amazon introduce perishable groceries on Amazon.co.uk with Same-Day Delivery?
Amazon plans to introduce this service in 2026.
Takeaways
- Amazon is shifting its focus to online grocery delivery in the UK.
- Expect more options for online grocery shopping through Amazon's partnerships with Morrisons, Co-op, Iceland, and Gopuff.
- Look for the introduction of Same-Day Delivery for perishable groceries on Amazon.co.uk in 2026.
Discussion
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Disclaimer
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