At a Glance
- Amazon will shut all Amazon Go and Fresh stores by Feb. 1, converting many into Whole Foods Market locations.
- The retailer has 57 Fresh and 15 Go stores, and will open over 100 new Whole Foods stores in the coming years.
- Amazon will continue to grow its same-day grocery delivery to 5,000 U.S. cities and experiment with new physical concepts.
- Why it matters: The shift signals Amazon’s focus on high-margin grocery sales and delivery, reshaping the physical retail landscape.
Amazon announced on Tuesday that it will close all of its Amazon Go and Amazon Fresh stores, a move that comes as the company shifts resources toward its grocery delivery service, Whole Foods Market, and a new “supercenter” concept. The announcement was made in a blog post that also outlined plans to convert many of the soon-to-shut locations into Whole Foods Market stores.
Store Closures and Conversion Plans
Amazon currently operates 57 Amazon Fresh stores and 15 Amazon Go stores. The company stated that it has not yet achieved a “truly distinctive customer experience” with its Amazon-branded physical grocery stores that would justify large-scale expansion. As a result, it will shut all Amazon Fresh and Go stores on Feb. 1, except for its California locations, which will remain open longer to comply with state requirements.
> “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 in the post.
The closure plan includes converting many of the shuttered sites into Whole Foods Market locations. Since acquiring Whole Foods in 2017, Amazon has seen more than 40 % sales growth and expanded the chain to over 550 stores. It now plans to open more than 100 new Whole Foods stores over the next few years.
| Store Type | Current Count | Planned Action |
|---|---|---|
| Amazon Fresh | 57 | Close (Feb. 1) and convert to Whole Foods |
| Amazon Go | 15 | Close (Feb. 1) |
| Whole Foods Market | 550+ | Expand to >100 new locations |
Delivery Expansion
Amazon’s grocery delivery network now reaches 5,000 U.S. cities and towns, including thousands served by same-day delivery. The company said it plans to expand same-day delivery of fresh groceries to more areas this year based on strong customer feedback.
> “At the same time, shoppers are turning to online delivery for everyday essentials and fresh food,” Amazon said.
The retailer also highlighted its continued commitment to experimenting with new physical store formats.
New Physical Concepts
Supercenter
Amazon revealed plans for a “new supercenter” physical retail concept that will allow customers to shop a broad selection of fresh groceries, household essentials, and general merchandise. No additional details, including the timing of the opening, were provided.
Amazon Grocery
The company is testing a new in-store format called Amazon Grocery, launched alongside Whole Foods Market in Chicago. The concept at Whole Foods Market in Plymouth Meeting, Pennsylvania, lets customers shop for groceries and household essentials from Amazon.
Technology and Innovation
Amazon Go locations have served as “innovation hubs” where the company developed its “just-walk-out” technology. This technology is now a checkout solution operating in more than 360 third-party locations across five countries.
Amazon plans to expand the use of “just-walk-out” technology to its own operations, with more than 40 North American fulfillment centers already using it in breakrooms today and more planned for 2026. The technology helps employees grab meals without checkout delays.
Historical Context
Amazon opened its first Amazon Go concept in 2018 in Seattle, allowing shoppers to take items off shelves and walk out, with the system charging customers after they leave. The first Amazon Fresh physical store opened in 2020, featuring an assortment of national brands, produce, meat, and seafood.
Key Takeaways
- Amazon will close all Amazon Go and Fresh stores by Feb. 1, converting many into Whole Foods Market locations.
- The retailer plans to open over 100 new Whole Foods stores in the coming years.
- Same-day grocery delivery will expand to more U.S. cities this year.
- Amazon is testing new physical concepts, including a supercenter and Amazon Grocery.
- “Just-walk-out” technology will be expanded to more fulfillment centers.
These moves reflect Amazon’s strategy to focus on high-margin grocery sales and delivery while experimenting with new retail formats.
