Amazon Closes Cashless Fresh Supermarkets in the UK

Amazon has announced the closure of all its Amazon Fresh stores in the United Kingdom, citing a strategic shift in its approach to the grocery business.

Previously, the company ended its Fresh service in Germany, which was exclusively available through delivery. Now, it is shutting down its cashless supermarket concept in the UK, which allowed customers to shop without traditional checkout lines.

The first Amazon Fresh store opened in 2021 in Ealing, West London. Following this, several additional locations were launched in areas that favored quick shopping experiences. At its peak, Amazon operated 19 of these technologically advanced stores in the UK.

These locations utilized Just Walk Out technology, similar to systems seen in Rewe's Pick & Go markets in Germany. Customers could access the store through an app linked to their Amazon accounts and simply take items off the shelves, bypassing the checkout process entirely. The items were tracked by cameras and sensors, minimizing the collection of personal data. Purchases were charged to the customer's Amazon account.

However, Amazon has determined that this complex and costly approach has not performed as expected, leading to a reevaluation of its strategy within the grocery sector. Reports indicate that the demand for completely cashless shopping systems has declined, particularly in the wake of the COVID-19 pandemic. As part of this transition, five of the Amazon Fresh locations in London are expected to be converted into Whole Foods stores. The company plans to concentrate more on its online grocery services moving forward.

The financial performance of the Fresh stores in the UK remains unclear. Nonetheless, it is known that in 2024, Amazon Fresh contributed $5 billion in a single quarter, encompassing all grocery purchases made online and in physical stores globally, rather than just in the UK.

The closure of these stores is expected to take place immediately, and Amazon is seeking new roles within the company for approximately 250 employees affected by the closures. Amazon employs an estimated 75,000 people in the UK, predominantly in its warehouses and delivery services. The reference to around 250 employees suggests that the concept of cashless supermarkets requires more staffing than critics might assume.