Even if we were in an economic boom period, I doubt any decision would have been materially different. For all the myriad reasons Amazon has called a halt to expansion of Fresh, this is likely to be way down the list. Simply because they have a lazy habit of pointing to these for absolutely every turn of event. Some sections of the press were predictably quick to point to the ‘consumer squeeze’ and ‘cost of living crisis’. As recently as last November, the press were reporting that expansion was going to be ramped up, with a further 260 sites reportedly in the offing.Īnd then the brakes have unceremoniously been slammed. So great that Amazon is even able to license the technology to them,Ī further 18 Amazon Fresh stores have opened in the intervening period, all within London (with the one exception of Sevenoaks). Enough to for Big Four grocers to be supposedly quaking in their boots.
Shoppers just need to have an Amazon app on their phone and scan a QR code at the entrance to gain access to the store and once they are done, simply walk out without having to negotiate a check-out (staffed or otherwise). Most waxed lyrical about the new format, not least its ‘Just Walk Out’ technology which many believed would turn the grocery industry on its head. BackgroundĪfter what seemed like years of frenzied speculation, Amazon finally opened its first Fresh store in Ealing in March 2021, to predictable media and analyst fanfare. But for others with a more rounded view, much less a surprise. Shock horror for many, especially the Amazon-sycophant analysts. It will still open a handful of new stores this year at sites where it has already committed, but previous plans for expansion beyond this have been put on ice. Reports in last week’s Sunday Times suggest that the business has abruptly called a halt to further roll-out of its checkout-free Fresh format in the UK. Questionable whether scale can be achieved organically.Īnother set-back in Amazon’s supposed imperious rise to global domination.But it does need scale if it is to succeed.Not necessarily end of the road for Amazon Fresh.Jury is out as to whether checkout-free technology is help or hindrance.Format is not flawed, but operates in a very competitive and challenging market.
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