The exterior of an Amazon Fresh grocery store is seen on December 12, 2024 in Federal Way, Washington.
David Ryder | getty Images
Amazon said Tuesday it plans to sunset its Fresh and Go brick-and-mortar chains, marking a major pivot in the company’s grocery strategy.
“After a careful evaluation of the business and how we can best serve customers, we’ve made the tough decision to close our Amazon Go and Amazon Fresh physical stores, converting various locations into Whole Foods Market stores,” the company wrote in a blog post.
Amazon said the closures are part of an effort to prioritize investments, though it hasn’t given up on physical retail. The company still plans to roll out other brick-and-mortar concepts, including “a mass physical store format.” It will continue to operate its Fresh grocery service and invest in same-day delivery of groceries, the company said.
The company said it expects to open more than 100 new Whole Foods locations over the next few years. It will also expand its line of Whole Foods Daily Shops, which are mini-markets that offer a smaller assortment of grocery items.
Last month, Amazon received approval from local officials in a Chicago suburb to construct a big-box store that woudl offer groceries, household essentials and general merchandise.
Amazon declined to share how many Fresh and go workers will be impacted by the store closures. It said it’s working to help employees find roles in its operations network, and that they will be eligible for a severance package.
for almost two decades, amazon has been determined to become a bigger player in the grocery market.In 2017, the company spent $13.7 billion to acquire Whole Foods, the largest deal in its history.
Amazon debuted its Amazon Fresh stores in 2020, featuring “Just Walk out” technology that allowed shoppers to skip the checkout line.
