Amazon Fresh grocery stores US closure
Amazon has officially announced a seismic shift in its brick-and-mortar strategy. In a move that has sent ripples through the retail industry, the tech giant is shuttering all Amazon Fresh and Amazon Go physical locations across the United States.
This decision marks the end of an era for Amazon’s experimental physical grocery formats, as the company pivots toward a more “deliberate” strategy focused on Whole Foods Market and high-speed delivery.
The Core Announcement: What’s Closing?
Amazon is pulling the plug on its physical supermarket and convenience store chains to streamline its grocery operations.
•Amazon Fresh: All 57 physical supermarket locations are closing.
•Amazon Go: All 14 convenience store locations are being shuttered.
•Timeline: Most stores are scheduled to close their doors by February 1, 2026.
•Exception: Some California locations may have a slightly different timeline, but the overall exit is definitive.
Why is Amazon Closing These Stores?
Despite years of investment and the introduction of “Just Walk Out” technology, the physical Fresh and Go formats struggled to find a sustainable economic model.
“While we’ve seen encouraging signals in these formats, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” stated Jason Buechel, CEO of Whole Foods and VP of Worldwide Grocery at Amazon.
Read Also: Inside Amazon and OpenAI’s $58B Partnership: What It Really Means
Key Factors Behind the Decision:
1.Economic Viability: The high cost of maintaining physical stores didn’t align with the growth needed for large-scale expansion.
2.Strategic Realignment: Amazon is moving its grocery logistics under the broader Worldwide Operations division to leverage its massive fulfillment network.
3.Focus on Strengths: The company is doubling down on what works—Whole Foods and rapid delivery.
The Future: Whole Foods and “One Grocery”
The closure of Fresh and Go stores doesn’t mean Amazon is leaving the grocery business. In fact, the company is expanding its footprint through other channels.
- Massive Whole Foods Expansion
Amazon plans to open over 100 new Whole Foods Market stores in the coming years. This includes the new “Daily Shop” format—smaller, quick-stop versions of Whole Foods designed for urban environments.
- Conversion of Locations
Not all closed Fresh stores will go dark forever. Amazon has confirmed that various locations will be converted into Whole Foods Markets, bringing the premium brand to neighborhoods previously served by Fresh.
- The “Amazon Fresh” Brand Lives On
The Amazon Fresh brand isn’t disappearing; it’s going digital-only. Customers can still shop for Amazon Fresh groceries online for fast, convenient home delivery.
Impact on Employees
The restructuring has unfortunately led to layoffs across the grocery organization. Amazon has stated it is working to help impacted employees find new roles within the company, offering:
•90 days of full pay and benefits.
•Career transition services.
•Severance packages for those who do not transition.
A Necessary Pivot
For the US consumer, this means the “Amazon Fresh” sign will soon vanish from local strip malls, replaced by the familiar green of Whole Foods or the convenience of a delivery van.
Amazon’s “One Grocery” mindset is now clear: Quality over quantity. By integrating grocery logistics into its core delivery network and expanding its most successful physical brand, Amazon is betting that it can win the grocery war from the warehouse, not the storefront.
