SEATTLE (dpa-AFX) - Amazon (AMZN) has announced plans to shut down the majority of its Amazon Fresh and Amazon Go grocery stores, pivoting its physical grocery strategy towards delivery services and an expanded Whole Foods footprint.
The company acknowledged that while its branded grocery stores showed promise, they have not yet delivered a distinctive customer experience with an economic model suitable for large-scale expansion.
Amazon will evaluate individual locations to determine whether some can be converted into Whole Foods stores. The company currently operates more than 550 Whole Foods locations and plans to open over 100 new stores in the coming years, including smaller-format Whole Foods Market Daily Shop outlets.
According to CEO Andy Jassy, Amazon's overall grocery business has grown to more than $100 billion in gross merchandise sales over the past year, ranking it among the top three grocers in the United States.
The company is also prioritizing same-day delivery, having expanded perishable delivery to more than 5,000 U.S. cities, with further growth planned in 2026.
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