Amazon abandons UK grocery stores, putting 250 jobs at risk – Tech Digest

Share

In a retreat from its physical retail strategy, tech giant Amazon has announced it’s closing all 19
of its Amazon Fresh grocery stores across the UK.

The move, which puts 250 jobs at risk, reflects the company’s struggle to compete with established supermarket chains in a fiercely competitive market.

Launched with great fanfare in 2021, the first till-less Amazon Fresh store in Ealing promised a seamless shopping experience using an app and advanced technology to track purchases. Customers could simply walk out and the bill would be tallied automatically.

However, this innovative approach failed to gain the necessary traction, particularly as post-pandemic shopping habits shifted away from smaller, high-tech formats.

A spokesperson for Amazon UK, John Boumphrey, stated the company remains “deeply invested” in the UK but will now pivot its focus back to its more successful online grocery business. T

he company operates key delivery partnerships with major retailers including Morrisons, Co-op, and Iceland. While 14 of the stores will close permanently, Amazon plans to convert the remaining five into Whole Foods Market locations, another brand it owns.

The decision comes amid broader economic challenges facing the retail sector, including potential changes to business rates. Industry leaders including Tesco and Sainsbury’s have warned that proposed tax reforms could further accelerate the decline of physical high street stores, benefiting online sellers at the expense of brick-and-mortar retailers.

This strategic shift away from a physical presence in the grocery market highlights Amazon’s recognition that its innovative, but costly, in-store model couldn’t effectively challenge the UK’s supermarket giants.

The company is now consulting with the affected employees and plans to offer alternative positions within Amazon where possible. The closure of the Amazon Fresh stores marks a notable setback for the company’s ambitious plans to dominate every facet of the retail landscape.

For latest tech stories go to TechDigest.tv