Amazon is making another attempt to crack the UK grocery market, this time repurposing its closed Fresh convenience stores into Whole Foods outlets. The US retailer abandoned 19 Fresh locations across Britain last autumn after the till-free concept failed to attract enough customers since launching in 2021.
Whole Foods Market, which Amazon acquired for $13.7 billion in 2017, currently runs seven shops in London and plans to open five more by the end of June. Four will occupy former Fresh premises, including a new Angel, Islington store that has already opened, with further locations planned at Wood Wharf in Canary Wharf, Gracechurch Street in the City, Liverpool Street and Notting Hill Gate. A sixth new store is earmarked for St James’s.
Jade Hoai, Whole Foods Market UK’s executive leader of purchasing, said the expansion reflected growing confidence in the brand’s appeal in neighbourhoods where customers prioritise quality food as part of their daily routine. The new Angel branch spans 3,600 square feet and features a hot food counter, self-serve coffee, and an Amazon kiosk, with Deliveroo delivery expected soon.
But the shift prompts questions about whether Amazon is simply swapping one struggling format for another. Whole Foods has had a rough go in Britain since entering the market in 2004. Turnover at its UK arm dropped seven per cent to £86.4 million in the year ending December 2024, while pre-tax losses reached £20 million. Cumulative losses have now topped £200 million. The chain closed two underperforming stores and its Dartford distribution centre in early 2024, cutting its average headcount from 798 to 608.
High operating costs and competition from both discounters like Aldi and Lidl and established chains such as Tesco and Sainsbury’s have made it difficult for Whole Foods to gain traction. Its premium pricing is a tough sell in a value-conscious market.
The situation contrasts sharply with the US, where Whole Foods has steadily grown under Amazon’s ownership. The American operation shed its “Whole Paycheque” reputation through aggressive price cuts and rollout of smaller-format stores. Whether that model can work in Britain, where consumer spending remains tight, is far less certain.