Amazon to Close Go and Fresh Stores, Shift Focus to Delivery and Whole Foods

Amazon has announced plans to shut down all its Amazon Go and Amazon Fresh locations as the company shifts its focus toward grocery delivery and expanding Whole Foods Market, alongside a new large-store concept.

In a blog entry released on Tuesday, Amazon revealed its intention to convert some of the soon-to-close locations into Whole Foods Market stores. Currently, the company operates 57 Amazon Fresh stores and 15 Amazon Go stores.

According to the blog, “While there have been some highlights with Amazon-branded physical grocery stores, we haven’t managed to create a truly unique customer experience with the right business model for scaling effectively.”

Customers will still be able to purchase Amazon Fresh products online in areas with “fast and convenient shipping.” However, the last operational day for Amazon Fresh and Go locations is set for February 1, although stores in California will remain open longer due to state regulations.

Since acquiring Whole Foods Market in 2017, Amazon has seen sales jump by over 40% and has expanded its presence to more than 550 stores, with plans to open an additional 100 Whole Foods Market locations in the coming years. Meanwhile, consumer behavior is shifting more towards online grocery delivery, according to Amazon.

The retailer currently delivers groceries to around 5,000 cities and towns in the U.S., with same-day delivery options available in many areas. The company plans to further enhance its same-day delivery capabilities for fresh groceries based on positive customer feedback.

Still, Amazon is keen to innovate with its physical store formats. On Tuesday, they introduced plans for a “new supercenter” that will feature a variety of fresh groceries, household items, and general merchandise. However, specifics like the store’s opening date were not disclosed.

Additionally, Amazon is testing a new in-store format named Amazon Grocery, launched in collaboration with Chicago’s Whole Foods Market, allowing customers to buy both groceries and household goods simultaneously.

Amazon’s first Go store opened in Seattle in 2018, allowing customers to grab items and walk out without going through a traditional checkout process. They have gained essential insights from this experience, with Go locations serving as “innovation hubs” that developed the “Just Walk Out” technology, which is now in over 360 third-party stores in five countries.

The company is also expanding this technology within its operations, currently being utilized in more than 40 fulfillment centers across North America, with plans for more by 2026 to streamline employee meals without traditional checkout interruptions.

Amazon initially launched its Fresh physical stores in 2020, offering a range of national brands, fresh produce, meat, and seafood.