AMZN Is Betting Bigger On Whole Foods With $230M Investment — But Amazon’s Physical Stores Are Losing Steam

• Amazon will raise pay and expand health, family, and education benefits for more than 100,000 U.S. Whole Foods workers as it plans further store expansion.
• Amazon plans to open more than 100 additional Whole Foods stores over the next few years and convert some Amazon Go and Amazon Fresh locations.
• Average hourly pay for Whole Foods store workers will rise above $21, with total compensation topping $29 an hour including elected benefits.

Amazon.com (AMZN) will invest more than $230 million at Whole Foods over the next year, covering higher pay, expanded benefits and new programs supporting the health, families and futures of more than 100,000 U.S. Whole Foods Market team members, the company said in a blog post. The investment will also expand access to Amazon benefits and Career Choice.

At the time of writing on Thursday afternoon, AMZN shares were trading 0.26% lower.

Why Whole Foods Matters

Whole Foods is a key part of Amazon’s physical-store business, which generated $22.6 billion in sales in 2025, accounting for about 3% of the company’s $716.9 billion in total revenue. Since Amazon acquired Whole Foods in 2017, sales have grown by more than 40%, and the chain has expanded to more than 550 locations.

Earlier this year, Amazon said the chain saw record customer traffic and comparable-store growth that outpaced the broader industry. Amazon also said it plans to open more than 100 new Whole Foods stores over the next few years, while converting some Amazon Go and Amazon Fresh physical stores into Whole Foods locations.

AMZN’s Physical Stores Growth Keeps Slowing

The investment comes as Amazon’s broader physical-store business has seen its revenue growth slow for four consecutive quarters, even as the company continues to expand Whole Foods.

Higher Pay For Whole Foods Workers

Beginning September 28, every hourly Whole Foods Market store team member will receive more compensation. The investment will bring the average store team member wage to more than $21 an hour and total compensation to more than $29 an hour, including the value of elected benefits.

For frontline team members, the company is also introducing a simpler path for pay to grow, with “predictable increases each year as they build time in their roles, replacing the previous performance-review-based model,” according to the company.

Expanded Health And Family Benefits

Starting January 1, 2027, U.S. Whole Foods Market team members will gain access to Amazon’s benefits, including health, family, and financial support. Eligible full-time team members will have access to health plans with options starting at $5 a week, with $5 copays for primary care and behavioral health providers.

Eligible plans will also include a One Medical membership with same-day and virtual doctor visits at no added cost. Amazon said the total value of benefits available to a full-time team member will rise by more than 75%.

Eligible team members will also receive company-paid short- and long-term disability insurance at no cost. Medical plan enrollees will gain access to fertility and family-building care, as well as cancer support and care navigation.

AMZN Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for AMZN was ‘bearish,’ unchanged in the past 24 hours, while message volume was ‘normal.’

AMZN stock has gained nearly 9% year-to-date.

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