Amazon To Close Its ‘Amazon Fresh UK’ Stores

Amazon.com (AMZN) announced on Tuesday that it has decided to close its “Amazon Fresh UK” stores, following a thorough evaluation of business operations and the substantial growth opportunities in online delivery.

The company said that it would offer redeployment opportunities to as many affected employees as possible.  “We’ve made the difficult decision to launch a consultation with employees regarding the proposed closure of our Amazon Fresh UK stores,” Amazon said. 

Retail sentiment on Amazon remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of the company were down 2.5% in early trading.

The e-commerce giant said that it continues to invest and innovate to further expand online delivery of everyday essentials and fresh groceries through Amazon.co.uk, Amazon Fresh, and third-party partners. The company said it proposes closing 14 stores under the Amazon Fresh brand and converting five to the Whole Foods Market brand.

Amazon said it was working to expand its online grocery selection and increase its delivery services to new areas. By early next year, the company said it plans to more than double the number of Amazon UK Prime members who have access to three or more online grocery delivery options through partners Morrisons, Iceland, Co-op, and Gopuff.

In June, Amazon announced plans to invest over $50 billion in the U.K. over the next three years, creating thousands of full-time jobs, building new fulfillment centers, and driving innovation across its operations.

Shares of Amazon have risen over 1% this year and gained 14% in the last 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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