Amazon is officially pulling the plug on its Amazon Fresh and Go stores. All 72 locations nationwide will close, marking the end of the company’s decade-long experiment in physical grocery retail, according to GeekWire.
The move shifts Amazon’s focus to Whole Foods—particularly its expanding same-day delivery service. The decision comes after years of testing physical store formats and cashierless “Just Walk Out” technology, which Amazon says never hit the profitability required to justify the business.
The closures will be immediate, with most taking effect on Sunday, February 1. Some Amazon Fresh locations will reopen as Whole Foods stores while others will shutter entirely.
Workers affected will receive 90 days of full pay and benefits and are being offered positions elsewhere in the company. Amazon has not released any layoff numbers related to the decision.
As a result of the closures, Whole Foods will become Amazon’s primary U.S. retail brand. The chain has grown more than 40% in sales since the 2017 acquisition, with over 550 locations nationwide and plans for more than 100 new stores in the coming years.
Online Grocery Is King
Amazon’s same-day grocery delivery is more popular than ever, now serving 2,300 cities and towns across the U.S. Perishable orders have increased 40-fold in a year—items such as milk and produce top the list of most-ordered products.
This is part of a broader company overhaul. Amazon frames the grocery closures as lessons learned that will be used in future retail projects and expansion.
For now, Amazon is doubling down where it sees results: Whole Foods and online grocery delivery. While Amazon shuts the lights on over 70 physical grocery stores across the nation, it shifts focus to solidifying what works.
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