Amazon is pulling the plug on its entire UK Fresh supermarket operation, closing all 19 stores just four years after launching its ambitious cashierless grocery experiment across the pond. The retreat comes as CEO Andy Jassy doubles down on online delivery while admitting the company's physical retail footprint needs serious recalibration.
Amazon just dealt a major blow to its brick-and-mortar ambitions. The tech giant announced Tuesday it's closing every single Fresh supermarket in the UK - all 19 locations - marking one of the company's most dramatic retail retreats in recent years.
The decision signals Amazon's broader struggle to crack the grocery code beyond its premium Whole Foods brand. According to the company's official statement, the closures follow "a thorough evaluation of business operations and the very substantial growth opportunities in online delivery."
Five of the shuttered Fresh locations won't stay empty long - they're getting converted into Whole Foods stores, suggesting Amazon still sees value in physical grocery retail, just not at the mass-market price point Fresh was targeting.
The UK experiment launched with considerable fanfare in 2021, when Amazon opened its first Fresh location outside the US in London. The timing seemed perfect - cashierless "Just Walk Out" technology was the industry's hot new thing, and Amazon was positioning Fresh as a more accessible alternative to Whole Foods' upscale positioning.
But the reality proved messier than the press releases suggested. Fresh stores offered cheaper prices and mass-market appeal compared to Whole Foods, which Amazon acquired for $13.7 billion in 2017. However, the UK grocery market proved surprisingly resistant to Amazon's tech-forward approach.
This isn't just a UK story - it's part of Amazon's global grocery recalibration. The company has slowed expansion of Fresh and Go stores across the US, even as it maintains 500 Whole Foods locations and experiments with mini "daily shop" formats in New York City.
CEO Andy Jassy remains publicly optimistic about Amazon's grocery future, telling investors at the company's May shareholder meeting that he's "bullish" on the sector. His confidence stems largely from the success of "everyday essentials" - items like canned goods, paper towels, and snacks that customers increasingly order online rather than picking up in-store.