Weezy closes nearly a quarter of its dark stores amid sector competition


Rapid grocery delivery startup Weezy has announced it has closed almost a quarter of its dark stores as competition in the sector intensifies, according to The Grocer.

Five of the company’s 22 dark stores it has in the UK have ceased their operations, while it has also consolidated two of its distribution hubs into one single site, to reduce labour hours and costs.

The dark stores were apparently not handling a justifiable amount of orders to be kept open when marketing spend in the areas that they served was account for, The Grocer reported.

A number of senior staff members have also left the company in recent months, including its legal director, finance director.

A number of suppliers also told The Grocer demand for their products at Weezy had noticeably fallen in recent months.

READ MORE: Weezy ponders selling its last-mile grocery delivery service

Weezy was one of the pandemic’s winners, the company taking home £15 million in series A funding to expand in London earlier this year.

However, growing competition from rivals including Getir, Gopuff and Gorillas has made the sector difficult to operate in for the start-up.

According to The Grocer, Weezy has contacted US rapid grocery delivery brand Gopuff, which has just launched in the UK, concerning a sale.

However, the offer was refused by Gopuff.

“Right now we’re focused on organic growth,” Gopuff co-founder and co-CEO Yakir Gola told The Grocer last month.

“There might be some other deals, if something makes sense for us.”

Weezy has been rumoured to have consulted with investment bank Evercore around the possibility of a sale of the business, according to Bloomberg.

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