In a significant strategic shift, retail behemoth Amazon has announced the complete closure of its entire network of Amazon Fresh and Amazon Go physical stores. The decision marks a sharp refocusing of the company's grocery ambitions towards online delivery, the expansion of its Whole Foods Market chain, and the development of new, larger store concepts.
A Strategic Retreat from Own-Brand Stores
The Seattle-based corporation confirmed the move in an official blog post, stating that the final day of operation for the vast majority of these stores will be February 1. Some of the soon-to-be-vacated locations are slated for conversion into Whole Foods Market outlets. This move follows the closure of all 19 Amazon Fresh stores in the UK last September, signalling a broader international retrenchment.
Amazon currently operates 57 Amazon Fresh supermarkets and 15 Amazon Go convenience stores across the United States. The company acknowledged that while its Amazon-branded grocery ventures showed promise, they ultimately failed to establish a distinctive enough customer experience with a viable economic model for widespread, large-scale expansion.
Whole Foods and Delivery Take Centre Stage
With this retreat, Amazon is doubling down on its other grocery assets. Since its landmark acquisition of Whole Foods Market in 2017, the organic-focused chain has experienced robust growth, with sales increasing by over 40 percent and its footprint expanding to more than 550 locations. Amazon now plans an aggressive expansion, intending to open more than 100 new Whole Foods stores in the coming years.
Simultaneously, the company is heavily investing in its online grocery delivery service, which it cites as an increasingly popular choice for shoppers seeking everyday essentials and fresh food. Amazon Fresh online delivery will continue to be available in select areas. The retailer's delivery network now reaches 5,000 US cities and towns, with thousands benefiting from a same-day service that allows customers to order produce and perishables alongside pantry staples.
New Formats and Ongoing Innovation
Despite these closures, Amazon insists it remains committed to experimenting with physical retail. The company revealed plans for a new 'supercentre' concept, designed to offer a vast selection of fresh groceries, household essentials, and general merchandise under one roof, though specific details on timing or locations were not provided.
Furthermore, Amazon is testing a novel store-within-a-store format at a Whole Foods location in Chicago. This 3,800-square-foot Amazon Grocery storefront, situated below the main store, offers everyday items not typically found in a Whole Foods, blending the two brand experiences.
The Legacy of Amazon Go Technology
The closure of Amazon Go stores represents the end of an era for its pioneering 'just walk out' technology. First introduced in Seattle in 2018, these stores allowed customers to grab items and leave without a traditional checkout, with payments processed automatically.
Amazon stated that the Go stores served as crucial 'innovation hubs'. The technology developed there is now deployed in over 360 third-party locations across five countries. The company is also expanding this system within its own operations, with more than 40 North American fulfilment centres already using it in employee breakrooms and further rollouts planned for 2026.
This strategic pivot occurs even as Amazon's overall grocery business, including Whole Foods, continues to struggle for significant market traction, currently holding less than 4 percent of the total US grocery market share. The move underscores the intense competition and logistical challenges within the supermarket sector, even for a tech and retail titan like Amazon.
