In a significant strategic move, the firm has proposed the closure of 14 stores and the conversion of an additional five to the Whole Foods Market brand, a US chain acquired by Amazon in 2017.
As reported by Retail Week, these proposals endanger approximately 250 jobs. However, Amazon has not disclosed how many employees would be impacted by these closures.
Affected staff will enter a consultation process, and Retail Week highlighted that they may be considered for new roles within the company.
Amazon debuted its first Amazon Fresh store in the UK in west London in 2021. The company now aims to revamp its grocery operations while continuing to foster partnerships with Morrisons, Iceland, Co-op, and Gopuff.
In June, the Groceries Code Adjudicator (GCA) launched a targeted investigation into potential breaches of the Groceries Supply Code of Practice by Amazon due to delayed payments to suppliers.
This investigation was initiated based on evidence gathered from various sources, seeking to assess the extent of any violations of this critical code.
“Delays in payment can significantly harm suppliers,” adjudicator Mark White stated at the time of the investigation’s commencement.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.”
Furthermore, the firm faces scrutiny from the Boycott, Divestment and Sanctions (BDS) movement for providing cloud computing infrastructure, artificial intelligence, and other technological services to the Israeli government and military, which is currently accused of committing genocide against Palestinians in Gaza.