Amazon Decided to Close All Amazon Fresh and Go Stores!
Amazon announced that it would close all Amazon Fresh markets and Amazon Go stores.
Amazon announced that it would close all Amazon Fresh markets and Amazon Go stores. The company thus took another step back from one of its physical retail models. The decision, covering approximately 70 stores, was taken as the company redirected its physical retail strategy toward the expansion of Whole Foods Market.
Seattle-based e-commerce giant Amazon stated that it had not found a suitable economic model to scale its “Amazon”-branded market concepts. While the company did not share a clear timetable for the closures, it was reported that some stores had already ceased operations.
58 Amazon Fresh and 14 Go Stores Are Closing
Amazon announced that it planned to close approximately 58 Amazon Fresh supermarkets and 14 Amazon Go stores across the United States. The company stated that it had received some positive signals in its Amazon-branded stores but had not been able to offer customers a sufficiently distinctive and strong experience.
Amazon said that some of the closed stores would be converted into Whole Foods Market stores; however, it did not disclose how many locations would fall within this scope. Whole Foods, which Amazon acquired in 2017, stands out as the company’s most successful physical investment in grocery retail.
It Had Announced the Closure of All Amazon Fresh Stores in the UK
Amazon executives have frequently emphasized in their public statements that they are not afraid to try different concepts and take the risk of failure. This decision came after the company’s previous retreats in physical retail. In March 2022, Amazon closed 68 stores belonging to the Amazon Books, Amazon 4-star, and Amazon Pop Up brands in the United States and the United Kingdom. In September of last year, it announced that all Amazon Fresh stores in the United Kingdom would be closed.
More Than 100 Whole Foods Market Stores to Open
Amazon emphasized the performance of Whole Foods Market and announced that it planned to open more than 100 new stores over the next few years. According to information shared by the company, Whole Foods has achieved over 40 percent sales growth since the acquisition and expanded to more than 550 locations. Customer traffic and comparable store sales growth were stated to be above the industry average.
Amazon also announced that it would continue to invest in new physical store concepts. The company confirmed a large-scale 229,000-square-foot store project planned outside Chicago and stated that it was working on a supermarket-like concept that brings together fresh food, household essentials, and general merchandise.
In addition, Amazon plans to expand the small-format Whole Foods Market Daily Shop concept that it launched in 2024. For this format, which currently has five operating stores, the goal is to open five more new stores by the end of the year.
Amazon stated that while closing Amazon Fresh and Go stores, it would continue to test hybrid retail experiences that include Amazon products within Whole Foods stores. The company said that this approach aims to make it easier for customers to access a broad range of grocery products from a single point.