Amazon to Close Amazon Go & Amazon Fresh Stores

by Food Trade News Team

Amazon (NASDAQ: AMZN) announced in a blog post today that it would be shuttering its Amazon Go and Amazon Fresh grocery stores to refocus its efforts on creating a “truly distinctive customer experience with the right economic model needed for large-scale expansion.”

The company reported that it plans to open 100 new Whole Foods Stores over the next few years. Amazon is currently building a 230,000-square-foot mega-store outside Chicago expected to be completed by 2027. This new concept will combine groceries, general merchandise, and essentials in a big-box format to challenge Walmart. 

The Amazon Fresh Stores have been operating for roughly five years but have had difficulty finding an audience and competing with typical grocery stores. Amazon Go locations have been parodied on Saturday Night Live and have struggled with utilization and utility concerns. 

Amazon touted the technological advancements from its Amazon Go cashier-less convenience stores. These self-titled ‘innovation zones’ were showcases for the company’s grab-and-go ‘Just Walk Out’ technology. 

The company did not disclose the timeframes for the closures and noted that some stores; in the nearly 50 Amazon Fresh and 14 Amazon Go locations, most stores should close at or around February 1st, with locations in California staying open longer to comply with state guidelines. Some will be repurposed to Whole Foods Market concept stores. These locations are focused on daily shopping with smaller sizes, around 7,000- to 14,000 square feet when compared to a typical 40,000-sq-ft store.

The company highlighted its Whole Foods Market Daily Shop concept – a smaller community store format with five locations that has been successful enough that the company expects to open five more before year-end. 

Amazon stated that customers can continue to shop Amazon Fresh online for delivery-only in available areas. 

This is a developing story, please check back for updates.