Amazon is set to shut all 19 of its UK Amazon Fresh grocery stores, less than five years after introducing the till-free sites in London. Five of these locations may be converted into Whole Foods outlets, another grocery brand owned by Amazon.

The closures will impact around 250 staff, and the company has begun a consultation process regarding its plans. Amazon has stated it aims to redeploy as many employees as possible.

Amazon opened its first UK grocery store in Ealing Broadway in March 2021. Customers at Amazon Fresh used a “walk in, pick up, and walk out” approach, with purchases automatically billed to their Amazon accounts via in-store cameras and other technology.

Why Amazon is making the change

The company explained that the decision followed a “thorough evaluation” of its operations and the growth potential of online grocery delivery. Going forward, Amazon intends to focus on its delivery services, collaborating with partners such as Morrisons, Co-op, Iceland, and Gopuff.

Industry analysts have suggested that the physical stores struggled to offer a truly differentiated experience. Sucharita Kodali of Forrester commented that Amazon Fresh may not have been positioned for success, citing factors including store locations and an unproven model in a highly competitive grocery market.

Danni Hewson at AJ Bell noted that the till-less technology “always felt a little awkward” and believes Amazon’s strength lies in delivery convenience rather than in-store shopping.

Key lessons for businesses

Amazon’s decision offers several practical insights for companies of all sizes:

  • Test new ideas, but be ready to pivot – Experimenting with new approaches is valuable, but know when to change direction. Amazon’s rapid pivot demonstrates that even major companies adjust quickly when initiatives do not deliver.

  • Focus on your strengths – Concentrate on what your business does best. Amazon is closing stores to prioritise online delivery, where it already holds a clear advantage. Consider where your own strengths lie and leverage them.

  • Ensure innovations solve real problems – Technology alone isn’t enough. While till-less stores showcased technological potential, they did not fully meet customer needs. Any new system or process should be simple, useful, and genuinely beneficial to your audience.

  • Remain flexible and responsive – Markets evolve rapidly. Monitor customer behaviour and competitors, and be ready to adjust your approach rather than sticking rigidly to plans that are not effective.

Amazon’s decision to close its physical stores underlines an important principle: success often comes from concentrating on your strengths, staying agile, and responding swiftly to market changes. While not every experiment succeeds, each one provides insights that can help refine strategy and support growth.

For business owners, the main takeaway is to continually assess what is working, identify opportunities for innovation, and ensure operations align with where true value can be added. If you need support in reviewing your business strategy, planning for growth, or navigating change effectively, get in touch — we’d be happy to help!

See: https://www.bbc.co.uk/news/articles/cx2xnkkn9ywo