Amazon to Close Amazon Go and Amazon Fresh Stores, Shifts Focus to Whole Foods
Amazon has announced it will close all of its Amazon Go and Amazon Fresh brick-and-mortar stores to prioritise same-day grocery delivery and expand the Whole Foods Market footprint.
Amazon is shutting down its physical Amazon Go and Amazon Fresh stores, bringing an end to the company’s experiment with branded brick-and-mortar convenience retail.
The company confirmed on Tuesday that it plans to close its remaining Amazon Go and Amazon Fresh locations, shifting its focus instead to expanding same-day grocery delivery and growing its Whole Foods Market presence. Amazon said the move will not affect customers who rely on its grocery delivery services.
Amazon Go and Amazon Fresh stores were central to the company’s efforts to develop and showcase its cashierless “Just Walk Out” technology. The system uses sensors and computer vision to track items shoppers pick up, allowing customers to leave without stopping at a traditional checkout. While Amazon will no longer operate these stores under its own brand, it plans to continue selling the technology to third-party partners, including venues such as sports stadiums and entertainment spaces.
“While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” the company said in a blog post announcing the decision.
Amazon’s exit from branded grocery retail follows a broader pullback from physical stores over the past several years. When closing earlier locations in 2024, an Amazon spokesperson said the company struggled to make the economics work, particularly given rising lease costs.
Despite the closures, Amazon is not abandoning physical retail altogether. Instead, it plans to double down on Whole Foods Market, a brand with stronger consumer recognition and loyalty. Amazon said it intends to open more than 100 new Whole Foods locations over the coming years.
Since Amazon acquired Whole Foods in 2017, the grocery chain has expanded to 550 stores and recorded more than 40% sales growth, according to the company. Amazon also plans to continue rolling out Whole Foods Market Daily Shop locations — smaller, convenience-focused stores designed for quick trips and ready-to-eat meals.
While the Daily Shop concept echoes some of the goals behind Amazon Go and Amazon Fresh, Amazon appears confident that shoppers are more comfortable engaging with a convenience-focused experience under the Whole Foods banner — even though the same parent company ultimately operates both.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0