Amazon shuts 70 grocery stores as it kills off entire shop format in US
Amazon said it is closing all of its Amazon Go and Amazon Fresh stores as the retail giant sharpens its focus on grocery delivery, Whole Foods Market and a new ‘supersized’ store concept.
The Seattle-based company said in a blog post on Tuesday that some of the soon-to-be shuttered locations will be converted into Whole Foods Market stores.
Amazon currently operates 57 Amazon Fresh stores and 15 Amazon Go locations.
‘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.
Amazon said customers can continue to shop Amazon Fresh online in some areas for ‘fast and convenient delivery’.
The final day of operation for Fresh and Go stores will be February 1, with the exception of locations in California, which will remain open longer to comply with state requirements.
Since Amazon’s purchase of Whole Foods Market in 2017, the grocery chain has seen more than 40 percent sales growth and expanded to more than 550 locations.
Amazon now plans to open more than 100 new Whole Foods stores over the next few years.
An Amazon Fresh grocery store, one of more than 70 locations the retail giant is shutting as it pivots away from its own physical supermarket brands
A Whole Foods Market store, which Amazon says will be the focus of its physical grocery expansion after closing Amazon Fresh and Amazon Go locations
At the same time, Amazon said shoppers are increasingly turning to online delivery for everyday essentials and fresh food.
The retailer now delivers groceries to 5,000 US cities and towns, including thousands served by same-day delivery that allows customers to shop for produce and other perishables alongside pantry staples.
Based on strong customer feedback, Amazon said it plans to expand same-day grocery delivery to more areas this year.
The moves come as Amazon's grocery business, including Whole Foods, is struggling to gain traction, accounting for less than 4 percent of the market share.
Still, the company said it will continue experimenting with new physical store formats.
Amazon revealed plans for a ‘new supercenter’ concept designed to let customers shop its broad selection of fresh groceries, household essentials and general merchandise in one place. The company did not provide details on timing or locations.
Amazon is also testing a new store-within-store format in Chicago.
The city's Whole Foods now has a 3,800-square-foot Amazon Grocery storefront located below the store. Shoppers can find everyday items that are not typically available in a Whole Foods store.
An Amazon Go convenience store, where shoppers could grab items and walk out without a checkout, a concept Amazon is now winding down
Amazon introduced its first Amazon Fresh physical store in 2020. The stores feature national brands alongside fresh produce, meat and seafood. Last September, it shut all 19 Fresh stores in the UK.
Amazon opened its first Amazon Go store in Seattle in 2018, allowing shoppers to grab items such as milk, potato chips or ready-to-eat salads and leave without stopping at a checkout.
The company’s technology automatically charges customers after they exit the store.
Amazon said the Go stores served as ‘innovation hubs’, helping it develop its ‘just walk out’ technology, which is now used in more than 360 third-party locations across five countries.
The company added that it is expanding the technology across its own operations, with more than 40 North American fulfillment centers already using it in employee breakrooms, and more planned for 2026.
