Amazon Fresh without a checkout hasn’t caught on in the UK

Amazon Fresh is halting the expansion of its checkout-free supermarkets in Great Britain. Sales figures are disappointing and costs are high. This is a severe blow by the bill to American retail companies.

Dozens of negotiations stalled

UK launch of supermarket chain Amazon Fresh has been discontinued. Amazon opened its first store in March 2021, combining the traditional supermarket with the checkout-less ‘Just Walkout’ technology pioneered by Amazon Go. There are no cash registers, the products customers take with them are automatically recognized and paid for through the Amazon app.

Originally, there were to be hundreds of similar stores in the United Kingdom, but after nineteen branches, those ambitions have already fallen into the water. Amazon has reportedly suspended negotiations for dozens of new properties and abandoned the search for more locations, The Sunday Times reported. New branches will be opened only where lease agreements are already in place.

Can’t compete

Sales of supermarkets without checkouts fall short of expectations and the cost of high-tech infrastructure is too high to compete with other convenience stores. The current uncertain economic climate certainly doesn’t help: UK consumers have been hit hard in the wallet by double-digit inflation and sharp increases in food prices. In addition, there will be a Restructuring is underway at the administrative level And, according to Business Insider, tensions are growing with organic chain Whole Foods, which Amazon bought in 2017.

However, Amazon “looks forward to opening additional Amazon Fresh stores in the future,” a spokesperson told The Sunday Times. The plans will be re-evaluated in about one and a half years. However, this means that Amazon is largely giving up on the UK: a few months ago, the e-commerce giant announced its all. 4 stars and bookstores will be closedSome of them are also in England.