Amazon is set to shutter all of its Amazon Fresh Stores in the UK, just four years after the initial launch of its grocery store in London.
The tech giant is planning to close its 19 fresh stores, with intentions to convert five of them into Whole Foods Market locations, a US organic grocery chain purchased in 2017.
The first fresh store opened in Ealing, West London in 2021, offering a shopping experience without traditional checkout processes.
Customers enter the store using an app, pay upon exiting, and are tracked by a network of advanced cameras and sensors that monitor items picked up in store.
Nevertheless, this innovative concept has faced challenges, especially as the demand for contactless shopping declined post-pandemic. Amazon has struggled to compete significantly with established retailers like Tesco and Sainsbury.
While Amazon did not specify how many employees would be impacted by the closures, it stated that it intends to provide new roles for these workers elsewhere within the company.
The company is further concentrating on its Whole Foods brand as part of a wider strategy to revamp its approach to the grocery sector.
Despite Whole Foods operating largely independently following its acquisition for $13.7 billion (£10.7 billion), Amazon has begun to exert more influence over the brand.
During the summer, Amazon expanded its corporate staff program, including wage standards and benefits, to include Whole Foods’ corporate employees in the US.
On Tuesday, Amazon announced its plan to double the number of UK Prime Subscription members eligible for at least three grocery options through partnerships with Morrison, Iceland, Co-ops, and Gopuff.
Starting next year, customers will be able to order fresh groceries such as dairy, meat, and seafood directly from the Amazon website, the company confirmed.
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Amazon’s grocery operations are currently under scrutiny in the UK, which includes a request to adhere to the grocery supply code.
In June, the Grocery Code Adjudicator (GCA), the industry watchdog, initiated an investigation into Amazon concerning allegations of delayed payments to suppliers.
“We’ve been striving to optimize our business,” stated John Boumphrey, Amazon UK’s country manager.
“We persist in innovating and investing to provide our UK customers with more choices and convenience, enabling them to shop for a wide array of everyday essentials and groceries at competitive prices with swift delivery options through Amazon.co.uk, Amazon Fresh, and Whole Foods Market Stores.
Source: www.theguardian.com
