Amazon Retreats from UK High Street as Fresh Stores Face Closure and Jobs at Risk

Amazon has announced the closure of all 19 of its Amazon Fresh grocery stores across the United Kingdom, marking a significant retreat from its ambitions to rival the nation’s major supermarket chains. The decision, which puts around 250 jobs in jeopardy, comes despite the tech giant’s stated commitment to the British market and follows a period of waning demand for cashierless shopping experiences post-pandemic.

Five of the Fresh store locations are earmarked for conversion into Whole Foods Market outlets. However, the majority will close, as Amazon pivots its grocery strategy away from bricks-and-mortar retail towards online operations. The company reaffirmed its “deep investment” in the UK but will now concentrate on boosting its online grocery offerings, including collaborations with established partners such as Morrisons, Co-op, Iceland, and Gopuff.

Amazon Fresh first entered the UK market in 2021, launching its signature till-less stores, starting with Ealing. Leveraging advanced camera and sensor technology, these shops allowed customers to leave with their shopping and be billed automatically, having entered using a mobile app. This bold experiment aimed to redefine grocery shopping convenience, but momentum faded as consumers returned to traditional shopping habits after lockdowns eased.

John Boumphrey of Amazon UK emphasised the company’s intention to support affected employees, stating that alternative employment would be offered wherever possible within the wider organisation. A formal consultation process has begun with staff at risk of redundancy, demonstrating a commitment to responsible restructuring within the UK workforce.

This shift comes as the supermarket sector faces fresh challenges in the form of proposed business rates reforms under consideration in the Chancellor’s upcoming Budget. Major retailers, including Tesco and Sainsbury’s, have warned that a new £1.7bn surcharge on larger shops could accelerate high street decline. The British Retail Consortium estimates that the measures would impact around 4,000 high street stores, further fuelling debates on the future of physical retail versus online models.

Despite retrenching from the high street, Amazon continues to invest in new initiatives to offer customers greater choice and convenience through its online platforms. The increased focus on digital grocery services underscores a broader trend in retail, with large operators seeking to adapt to changing consumer preferences and a challenging high street environment.