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Tesco snaps up former Amazon Fresh sites as convenience push gathers pace

Tesco is pressing ahead with a major expansion of its convenience estate after buying a number of former Amazon Fresh stores in London.

Britain’s largest supermarket group plans to open more than 70 new Tesco Express outlets by March 2027, building on the 60 convenience stores it opened last year. The retailer already operates just over 2,000 convenience shops across the UK and Ireland as it seeks to capture a greater share of everyday, top-up spending.

Tesco has acquired five ex-Amazon Fresh locations in London, on Kensington High Street, in Hounslow, Moorgate, Aldgate East and Wembley, following the US technology group’s decision to retreat from its short-lived bricks-and-mortar grocery experiment in the UK. The sites are expected to reopen as Tesco Express stores before the summer.

Further Express openings are planned across a wide geographic spread, from Bickington in Devon and Pontrhydyrun in Torfaen to Strabane in Co Tyrone and Wallyford in East Lothian, underlining the retailer’s ambition to deepen its presence in both urban and regional communities.

Alongside its convenience push, Tesco is continuing to invest in larger-format stores. After opening new superstores in Ripon and Harrogate late last year, it plans to launch two more in Scotland in 2026, in Pitlochry, Perth and Kinross, and the Heartlands development in West Lothian.

Nick Johnson, Tesco’s group property director, said the expansion would allow the grocer to serve “even more people, in even more communities”. Tesco operates more than 7,000 stores worldwide.

The move reflects an intensifying land grab across the grocery sector, with convenience retail, estimated to be worth £48.8 billion in the UK, emerging as one of the few consistent growth areas. Time-poor shoppers are increasingly favouring smaller, more frequent local trips over traditional weekly supermarket shops.

Tesco’s rivals are moving aggressively. Asda is accelerating its convenience rollout and is targeting 300 Express-format stores by the end of this year. Waitrose has committed £1 billion to open around 100 convenience outlets over the next five years.

Morrisons plans to add a further 250 Morrisons Daily stores this year, focusing on the south of England and the Midlands, while Sainsbury’s continues to open around 20 to 25 Local stores annually under its “next level” strategy.

The rapid expansion by supermarket giants is putting increasing pressure on independent retailers. Convenience store owners warn that the scale, buying power and promotional strength of supermarket-owned chains are driving up rents and intensifying competition, accelerating the decline of traditional corner shops on Britain’s high streets.

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