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Retail

Amazon to close UK grocery stores and switch to online delivery

Amazon.com Inc (NASDAQ:AMZN) is shuttering almost all its food stores in the UK to focus on online delivery instead, though will convert some shops to its Whole Foods brand.

The US ecommerce giant said five of its 19 Amazon Fresh stores, all dotted around greater London, would be switched to its Whole Foods fascia.

It will focus on grocery delivery services instead, where it has partnered with Morrisons, Co-op, Iceland, and Gopuff.

Amazon opened its first UK grocery store in Ealing in 2021 but has since faced allegations of failing to pay its suppliers on time.

In June this year, the Groceries Code Adjudicator (GCA) launched an investigation.

Amazon UK said it had made the decision to close the stores, making around 250 staff redundant, after a "thorough evaluation of business operations and the very substantial growth opportunities in online delivery".

The Nasdaq-listed group said it currently plans to expand its Whole Foods store estate to 12 in the UK by the end of 2026.

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