Whole Foods Market, the natural foods retailer owned by Amazon, is set to open its first new store in the UK since 2014.
Located on London’s King’s Road in Chelsea, it will open on 25 March and add to its five existing sites around London. The new 21,800 sq. ft. outlet will feature new and exclusive products, local brands from London and across England, and customer favourites including a salad bar and pizzeria.
“Whole Foods Market has roots deeply planted in the UK, and we are thrilled to be bringing more natural and organic food to this market with the opening of our new King’s Road store this March,” said Jason Buechel, VP of Amazon’s Worldwide Grocery Stores and Whole Foods Market CEO.
“Continuing our expansion outside of the US enables us to extend our reach to more customers while advancing our higher purpose to nourish people and the planet.”
Today, Whole Foods Market has more than 535 stores in the US, UK and Canada, with nearly 90 stores in the pipeline.
Whole Foods Market & Amazon executive VP for growth and development, Christina Minardi, added: “We know customers in the UK are seeking high-quality natural and organic products.
“As we plan for the future, we are actively looking at this market and opportunities to bring Whole Foods Market to more customers there.”
The business has struggled to make a significant impact in the UK but has recently seen a slight improvement in its results after adding more well-known brands to its product range and introducing more value-orientated options to appeal to a wider audience.
The most recently filed accounts for Whole Foods Market’s UK division (Fresh & Wild) show pre-tax losses eased from £26.3m to £23.1m over the year to 31 December 2023. However, gross margin decreased from 36% to 35% due to inflation and increased supply chain costs.
After a 2.9% fall in the previous 12 months, turnover was up 1.7% to £93.1m, driven by higher sales volumes as it regained customers following a drop-off during the height of the cost of living crisis.
NAM Implications:
- Something must have caused Amazon to revert to ‘store-opening’ mode.
- The issue for suppliers (and rivals?):
- The first of many more…
- …or ‘another test’?
- Either way, one to watch…
