At the start of the year, Amazon announced the launch of its latest UK grocery proposition, Amazon Now—an ultra-fast delivery service providing groceries and everyday essentials to customers, from warehouse to door, within 30 minutes. Initially piloted in south London, the service has already expanded to Canary Wharf, Bethnal Green, Shoreditch, Hoxton and Holborn with ambition for UK coverage in due course. Most cities are able to provide a 60-minute grocery delivery from Amazon via their partnership with Gopuff, the US delivery company, but no 30 minutes yet.
Amazon’s renewed push into grocery, through delivery, follows the closure of all its Amazon Fresh convenience stores in 2024. That decision, it is understood, reflected the challenges of competing in a mature convenience retail market.
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While attention has focused on competition with the already established fast delivery operators such as Just Eat, Deliveroo and Uber Eats, it also raises the question of how this model of convenience retailing will drive demand for space—and the further impact this may have both on the traditional grocery market and on high streets.
Ultra-fast delivery co-dependant on proximity – to both storage and customers. To achieve a 30-minute fulfilment windows, operators require a dense network of small-scale, urban fulfilment pick hubs. Typically ranging between 5,000–10,000 sq ft, these units act as mini distribution centres. Goods are then delivered by employees, in Amazon Now’s case, by e-bike in ranges of up to 6km
[1]. However, and notably, Amazon have previously trialled autonomous vehicles and, most recently, drones
[2] in its wider Amazon Prime network which could provide the basis of further future delivery options for Amazon Now.
This represents a notable departure from traditional retail requirements, focusing on what Amazon knows best, logistics; but introducing a different set of locational and design considerations. Sites and premises must sit within dense residential catchments, offer efficient last-mile access, and accommodate extended (often 24hr) business hours, operating often under a Class B8 Use, rather than retail.
Implications for the High Street
The expansion of ultra-fast grocery delivery is likely to have implications for the future of high streets. However, any ‘impact’ is more complex and nuanced than simply the bifurcation of convenience retail.
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Convenience grocery has traditionally acted as an anchor for local centres, generating frequent footfall. A shift toward ultra-fast convenient home-delivered retail risks reducing in-store visits, with knock-on effects for the high street. However, much of this impact potentially has already occurred, with consumers responding positively and decisively to the food retailers omnichannel strategies – that is shopping online and in-store - with suggestions that we spend more as a result
[3].
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Whilst some high streets will be further impacted, there is potential for repurposing of retail and other town centre units to accommodate micro-fulfilment uses. This may help vacancy rates but may also alter the character and function of the wider high street as a whole.
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Conversely, the integration of last-mile logistics into town centres could reinforce their role as multi-functional hubs—combining retail, leisure, residential, and distribution. This aligns with broader planning objectives around increased densification and sustainable urban living, provided impacts are effectively managed.
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The growth of distribution uses in close proximity to residential areas raises considerations around noise, traffic, and servicing. The planning system has not fully caught up with this hybridisation of retail and logistics. Local planning authorities will need to carefully balance economic benefits with community impacts, particularly in areas not traditionally associated with logistics uses.
Looking Ahead
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Amazon’s approach to rapid grocery delivery so far appears cautious, perhaps unsurprisingly given recent experience with Fresh. However, a need for density and efficiency to meet consumer demand, coupled with a highly competitive market has seen it capitalise on its existing logistics expertise while managing risk.
Five years ago, the idea of groceries arriving in under half an hour felt futuristic. Now it’s becoming the new normal (certainly in cities) and is now part of how we shop not only for comparison, but convenience goods.
There are lots of examples of these last-mile operators
[4] in smaller, multi-let industrial units already and this has extended to include railway arches, retail units, and other non-traditional spaces, that may previously have struggled to attract tenants. However, with Amazon in this market, competition will increase for easily accessible space which is likely to spill over into the high street.
From a planning perspective, this growth of rapid delivery raises important questions around land use, amenity, and the intensification of logistics activity in urban areas both for main shopping areas and for residents who live there.
Ultra-fast delivery through logistics is increasingly shaping our cities and towns. When convenience is king, the line between shop and warehouse is rapidly blurring. The key question is how it can be integrated in a way that complements, rather than competes with, this fast-evolving sector.
Footnotes
[1] Amazon Now | Local E-bike Deliveries | Amazon Flex
[2] 'We had people come just to see it': Amazon delivers its first UK parcels by drone - BBC News
[3] What Is Omnichannel Retailing and How To Implement It? | Retail Bulletin
[4] https://www.thegrocer.co.uk/promotional-features/dark-store-trends-and-the-consumer-demand-for-groceries-in-minutes/665822.article
