Amazon.com: Shuts Fresh and Go stores to refocus its grocery strategy

  Amazon will close all of its Amazon Go and Amazon Fresh physical stores, shifting its grocery strategy toward Whole Foods Market and online delivery, the Seattle-based company announced Tuesday.

The closures mark the end of Amazon’s standalone grocery store brands as the company concentrates investment in areas it says are growing faster, including same-day grocery delivery and an expanded Whole Foods footprint.

The last day of operation for Amazon Go and Amazon Fresh stores will be Feb. 1, according to the company. Locations in California will remain open longer to comply with state requirements.

Amazon closing Amazon Go and Amazon Fresh stores

Amazon currently operates 57 Amazon Fresh stores and 15 Amazon Go locations. Some of the soon-to-close stores will be converted into Whole Foods Market locations, the company said.

"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.

Customers will still be able to shop Amazon Fresh online in available areas for "fast and convenient delivery," Amazon said.

Amazon launched its first Amazon Go store in Seattle in 2018, featuring cashierless technology that allowed shoppers to grab items and leave without stopping at checkout. Amazon Fresh opened its first physical store in 2020, offering national brands alongside fresh produce, meat and seafood.

Focus shifts to Whole Foods Market expansion

Amazon said it plans to invest heavily in Whole Foods Market, which it acquired in 2017. Since the acquisition, Whole Foods has seen more than 40% sales growth and expanded to more than 550 locations, according to the company.

Amazon now plans to open more than 100 new Whole Foods Market stores over the next few years.

The company is also expanding Whole Foods Market Daily Shop, a smaller-format store designed for quick trips and grab-and-go items. Five additional Daily Shop locations are expected to open by the end of 2026.

Grocery delivery expanding to thousands of U.S. cities

Amazon said grocery delivery continues to see strong growth as more shoppers turn to online ordering for everyday essentials and fresh food.

The company currently delivers groceries to more than 5,000 U.S. cities and towns, including thousands served by same-day delivery. Customers can order produce, meat and other perishables alongside household essentials, Amazon said.

Based on customer feedback, Amazon said it plans to expand same-day grocery delivery to more areas this year.

https://www.fox13seattle.com/news/amazon-closing-amazon-go-amazon-fresh-stores