Amazon (AMZN) Shuts Down U.K. Grocery Stores in Strategic Pivot

Amazon pulls the plug on British grocery operations—another brick-and-mortar experiment bites the dust.

The Retail Reckoning

AMZN slashes its U.K. grocery footprint after failing to crack the local market. The e-commerce giant discovered what British shoppers already knew—online convenience doesn't always translate to physical retail success.

Corporate Calculus

Amazon cuts losses on underperforming locations, redirecting resources toward more profitable ventures. The move follows pattern recognition: even trillion-dollar companies can misjudge regional consumer behavior.

Market Realities

Physical grocery margins remain razor-thin while logistics costs soar. Another reminder that dominant digital platforms still struggle with last-century retail models—but hey, at least the stock buybacks will continue uninterrupted.

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Seattle-based Amazon said in a blog post that it’s preparing to close 19 of its Fresh U.K. stores “following a thorough evaluation of business operations and the very substantial growth opportunities in online delivery.” Five of the Fresh locations are expected to be converted into Whole Foods stores.

Amazon opened its first Fresh location outside the U.S. in London, England in 2021, about a year after it debuted the store concept in Los Angeles, California. Fresh stores offer cheaper prices and more mass-market items compared to Whole Foods, which is an upscale supermarket chain that Amazon owns. Many Fresh stores also feature Amazon’s cashier-free payment technology.

Grocery Strategy

The Fresh store closures in the U.K. come as Amazon adjusts its grocery strategy. The company has slowed expansion of its Fresh grocery chain and Go stores in the U.S. It still maintains 500 Whole Foods locations, most of which are in the U.S. and Canada. But the company appears to be reassessing groceries as it pivots to invest more aggressively in artificial intelligence (AI).

Despite the change, Amazon CEO Andy Jassy is reported to be a fan of the company’s grocery offerings and has touted the success of the online grocery business, which specializes in items such as canned goods, paper towels, dish soap, and snacks. Jassy said at the company’s annual shareholder meeting in May that he remains “bullish” on groceries in the NEAR term.

Is AMZN Stock a Buy?

AMZN stock has a consensus Strong Buy rating among 46 Wall Street analysts. That rating is based on 45 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $264.51 implies 15.29% upside from current levels.