Additional Coverage:
- Amazon’s latest pivot: Bye-bye, automated grocery stores (businessinsider.com)
Amazon Pulls Plug on Fresh and Go Stores, Shifts Focus to Whole Foods and Delivery
SEATTLE, WA – After years of investment and development, Amazon is significantly scaling back its physical grocery footprint, announcing the closure of its Amazon Fresh and Amazon Go stores. The e-commerce giant stated Tuesday that it has yet to cultivate a “truly distinctive customer experience” with a viable economic model for widespread expansion in these formats.
The closures affect approximately 60 Amazon Fresh supermarkets across the U.S. and around 15 Amazon Go convenience stores. Some of these shuttered locations are slated for conversion into Whole Foods Market stores, which Amazon acquired in 2017.
“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,” Amazon elaborated in a company blog post.
This strategic pivot marks the latest evolution in Amazon’s ambitious, yet often challenging, foray into the grocery sector. Despite building Amazon Fresh from the ground up, integrating Whole Foods, and bolstering its delivery network, Amazon’s market share in groceries remains a fraction of leading competitors like Walmart. Industry insiders have noted Amazon’s recent interest in emulating aspects of Walmart’s successful Supercenter model, with plans for a large-format store near Chicago reportedly in the works.
Amazon first introduced its cashier-less Amazon Go concept to the public in 2018, followed by the debut of Amazon Fresh stores in 2020. These Fresh locations were designed to offer a broader range of mass-market groceries, including sodas and snacks, compared to Whole Foods, and often featured advanced technologies like the “Just Walk Out” system.
Moving forward, Amazon confirmed that its primary focus for the grocery business in 2026 will be on Whole Foods and expanding its delivery capabilities. The company plans to open over 100 new Whole Foods supermarkets “over the next few years,” alongside five new Whole Foods Market Daily Shop stores in 2026. These Daily Shop locations will offer a more curated selection of groceries in a smaller format.
Furthermore, Amazon is committed to enhancing its grocery delivery services this year, which currently extend to 5,000 cities and towns across the U.S., including many areas offering same-day delivery for perishable items.
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- Amazon’s latest pivot: Bye-bye, automated grocery stores (businessinsider.com)