Amazon Converts Fresh Go to Whole Foods Locations

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.