Amazon Closes Its Fresh Grocery And Go Stores To Focus On Whole Foods Growth

• Amazon plans to open more than 100 new Whole Foods Market locations over the next several years.
• The retail giant said its Go and Fresh stores did not yet achieve the scale or differentiation needed for broader expansion.
• The company said it is now exploring new store formats, including supercenter concepts.

Amazon.com Inc. (AMZN) announced on Tuesday that it is closing its Amazon Go and Amazon Fresh stores to focus on more successful formats.

In a blog post, the e-commerce giant said it plans to expand its fast delivery services, grow Whole Foods Market locations, and adjust its physical store footprint.

“After a careful evaluation of the business and how we can best serve customers, we've made the difficult decision to close our Amazon Go and Amazon Fresh physical stores, converting various locations into Whole Foods Market stores.”

–Amazon.com  

Whole Foods Expansion

Amazon plans to open more than 100 new Whole Foods Market locations over the next several years, including additional Daily Shop stores. These smaller formats focus on quick-stop shopping with grab-and-go meals, coffee, and everyday essentials. Since acquiring Whole Foods in 2017, Amazon has seen over 40% sales growth across more than 550 stores.

Amazon said that while its Go and Fresh stores served as innovation testing grounds, including the development of Just Walk Out checkout technology, they did not yet achieve the scale or differentiation needed for broader expansion. The retail giant added that it will continue to offer Amazon Fresh online delivery in served areas.

Amazon stock traded over 1% higher by Tuesday mid-morning. However, on Stocktwits, retail sentiment around the stock shifted to ‘bearish’ territory from ‘normal’ the previous day amid ‘normal’ message volume levels. 

Amazon’s Grocery Efforts And What’s Ahead  

Amazon has experimented with physical grocery formats for nearly a decade. Its Go stores, known for Just Walk Out cashierless technology, debuted in 2018, promising shoppers an experience without checkout lines. 

That technology has since been adapted for use in third-party locations like stadiums and hospitals. The Fresh chain launched in 2020 as a full-service supermarket offering.

The company said it is now exploring new store formats, including supercenter concepts combining groceries, household essentials, and general merchandise under one roof. 

AMZN stock has gained over 2% in the last 12 months. 

Also See: Richtech Robotics Stock Jumps 43% — What’s The Connection With Microsoft?

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