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Amazon is closing all of its Amazon Fresh grocery stores in the U.K., but also placing bigger bets on Whole Foods — particularly around online grocery delivery in the region.
In a blog entry, Amazon said it had "made the difficult decision" after a "thorough evaluation of business operations and the very substantial growth opportunities in online delivery."
All 19 Amazon Fresh stores in the U.K. are closing, although five will be converted to a Whole Foods location. With the five stores and openings planned for Chelsea and Greater London, Whole Foods will have 12 locations in the U.K. by the close of 2026.
Amazon’s blog entry touted Whole Foods’ differentials, including natural and organic foods and commitment to sustainable practices. Amazon said, “Customers tell us they love shopping the Whole Foods Market physical store experience.”
Amazon Fresh, which first arrived in the U.K. only in 2021, offer less-expensive prices and more mass-market items. The concept also features Amazon’s cashierless “Just Walk Out” technology.
However, Amazon’s blog entry particularly called out plans to expand online grocery services. Amazon said, “In response to strong customer demand, we are working hard to add more grocery selection online and expand our delivery services to new areas.”
Amazon’s blog entry pointed to a report from PwC’s Strategy& indicating that by 2030, Britons are expected to conduct over 25% of their food spending online.
Amazon noted that Amazon U.K.’s growth in the grocery category, boosted by same-day and next-day delivery, is outpacing the rest of its U.K. business, increasing nearly 20% year-over-year in 2024. Everyday essentials, which includes groceries and household items, grew nearly twice as fast as all other categories in the U.K., and now represents nearly one out of every three units sold on Amazon.co.uk.
Amazon Seems Zeroed in on UK Expansion via Partnerships, e-Comm
To build on the momentum, Amazon expects, by early 2026, to more than double the number of Amazon U.K. Prime members who have access to three or more online grocery delivery options through partners Morrisons, Iceland, Co-op, and Gopuff. With the expansion, more than 80% of U.K. Prime members will be able to shop at least one of its grocery partners. In 2026, Amazon will also be introducing perishable groceries on Amazon.co.uk.
The moves are seen as similar to those in the U.S., where Amazon has closed some Amazon Fresh stores and slowed the format’s expansion while recently announcing plans to rapidly expand the same-day delivery of perishables.
Sucharita Kodali, an analyst at Forrester, told BBC that Amazon "hasn't quite figured out a successful" plan for grocery stores while noting the grocery channel remains “very competitive," including in the U.K.
She said, “It's unlikely that Amazon Fresh has created a differentiated offering and it may not even have ideal locations, so it's probably not been set up well for success from the start."