In a significant strategic shift, Amazon has confirmed it will permanently close all of its Amazon Fresh supermarkets and Amazon Go convenience stores across the United States. The announcement, made on Tuesday 27 January 2026, affects a total of 72 physical grocery locations nationwide.
Focus Shifts to Whole Foods and Delivery Services
The retail giant stated that despite observing "encouraging signals" from customers, it has been unable to establish a "truly distinctive customer experience" alongside an economically viable model suitable for widespread expansion. Consequently, Amazon will now concentrate its grocery retail efforts on its Whole Foods Market chain and its rapidly growing same-day grocery delivery service.
Store Closure Timeline and Employee Support
Most affected stores will cease operations on Sunday 1 February 2026, with California locations remaining open for an additional 45 days to comply with state labour notification requirements. Amazon has not disclosed the exact number of employees impacted by these closures but confirmed it is actively working to transition staff into new roles within the company.
Affected workers are being offered positions in Amazon's extensive warehouse and delivery networks, alongside the option of a comprehensive severance package. This package includes 90 days of full pay and benefits for those who choose not to transfer to other roles within the organisation.
Strategic Insights and Future Retail Concepts
In an official statement, Amazon revealed it had "gathered valuable insights about what matters to customers" through operating the Fresh and Go stores. The company indicated that some shuttered Amazon Fresh locations may be converted into new Whole Foods Market stores as part of this strategic realignment.
Jason Buechel, Amazon Worldwide Grocery Stores Vice President and Whole Foods CEO, communicated directly with affected employees via memo, expressing gratitude for their contributions. He emphasised that their work would directly influence Amazon's future retail concepts, stating: "Although we're closing these stores, the impact of your work will shape our next generation of store concepts and customer experiences."
Whole Foods as Primary Physical Presence
Following these closures, Whole Foods Market will become Amazon's sole physical retail presence in the United States. While Amazon has experimented with various physical retail formats in recent years—including bookstores—Whole Foods remains its most successful and enduring brick-and-mortar venture.
Despite this consolidation, Amazon confirmed it continues to explore and experiment with potential new physical retail options, suggesting further innovations may emerge in the grocery and general retail sectors. The company's statement highlighted sustained growth within both Whole Foods stores and its same-day delivery services as key factors driving this strategic decision.
