In a surprising move, Amazon has announced the closure of all its Amazon Fresh and Amazon Go grocery stores, marking a significant shift in the company's retail strategy. This decision, revealed on January 28, 2026, involves the closure of 72 stores nationwide. Amazon has decided to focus more on delivery services and expanding its Whole Foods Market footprint.
The closure of Amazon Fresh stores is part of a broader strategic move by the tech giant to streamline its grocery operations. Amazon plans to convert an unspecified number of these storefronts into Whole Foods Market locations, with ambitions to open more than 100 new Whole Foods stores in the coming years. This shift underscores Amazon's commitment to enhancing its grocery delivery services and expanding its online shopping options.
Amazon's decision to close its Amazon Fresh and Amazon Go stores has raised questions about the future of its brick-and-mortar grocery retail strategy. The company's plan includes converting 14 Amazon Fresh stores to Whole Foods Market locations, which will affect 250 jobs. Affected employees will undergo a consultation process for potential new roles in the company.
Additionally, Amazon is facing a GCA investigation regarding delayed supplier payments, which may breach the Groceries Supply Code. The company is also under scrutiny from the BDS movement due to its ties with Israel. This decision to close the stores and convert some to Whole Foods locations comes after Amazon announced the closure of 14 Fresh grocery stores in the United Kingdom last month, with the five remaining locations also being converted to Whole Foods stores.
The recent Amazon Fresh store closures in Southern California further highlight the company's pivot away from its mass-market grocery experiment. Despite the struggles with Fresh, CEO Andy Jassy remains optimistic about the grocery sector, focusing on expanding same-day delivery and launching the low-cost Amazon Grocery line.
The conversion of some Fresh and Go stores to Whole Foods locations is part of Amazon's broader strategy to enhance its grocery offerings. The company aims to provide customers with expanded shopping options, including more selection and faster delivery speeds. This move is expected to benefit millions of customers who already rely on Amazon for affordable household essentials and groceries.
In summary, Amazon's decision to close its Amazon Fresh and Amazon Go stores is a strategic move that reflects the company's focus on delivery services and the expansion of its Whole Foods Market brand. This shift, while affecting some employees and store locations, is part of a broader strategy to enhance customer offerings and adapt to the evolving retail landscape. The company's optimism about the future of its grocery services, despite recent challenges, highlights its commitment to innovation and customer satisfaction.
