Amazon is closing all Amazon Go and Amazon Fresh stores, pivoting its grocery strategy to focus on expanding Whole Foods Market, enhancing online delivery, and introducing a new 'supersized' physical store concept.
Amazon announced the closure of all 57 Amazon Fresh and 15 Amazon Go physical store locations, effective February 1st, with California stores remaining open longer due to state requirements. The company stated that these formats 'haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion.' This strategic pivot will see Amazon concentrate on its successful Whole Foods Market chain, which has experienced over 40% sales growth and expanded to more than 550 locations since its 2017 acquisition. Amazon plans to open over 100 new Whole Foods stores in the coming years and will convert some of the shuttered Go and Fresh locations into Whole Foods Markets. Concurrently, the online retail giant is intensifying its focus on grocery delivery, serving 5,000 U.S. cities and towns, and aims to expand its same-day fresh grocery delivery service. Amazon also revealed plans to experiment with a new 'supercenter' physical retail concept, designed to offer a broad selection of fresh groceries, household essentials, and general merchandise. Despite the closures, Amazon emphasized the valuable insights gained, particularly the 'just walk out' technology developed in Amazon Go, which is now utilized in over 360 third-party locations globally and is being integrated into Amazon's own fulfillment centers for employee convenience. Amazon is also testing an 'Amazon Grocery' in-store format in collaboration with Whole Foods Market.
