Amazon is set to close all 19 of its Amazon Fresh grocery stores across the UK, marking a significant U-turn on its cashierless brick-and-mortar experiment. The stores, known for their 'Just Walk Out' technology, failed to gain enough traction to compete with established UK supermarkets like Tesco and Sainsbury's after launching in 2021. This decision is part of a strategic shift to refocus investment on the area where Amazon is strongest: online grocery delivery. The company plans to double down on its partnerships with retailers like Morrisons and Co-op to expand its online offering and will convert five of the closing Fresh sites into its more upscale Whole Foods Market stores, suggesting a pivot to the premium end of the physical grocery market. This move demonstrates that even a tech giant like Amazon must adapt its strategy when a new business venture fails to achieve the necessary sales volume and market share against powerful incumbent competitors.
BBQ - Explain a reason why Amazon's decision to convert some Amazon Fresh stores into Whole Foods Market stores?
