Amazon to shut Go and Fresh stores, shifts focus to delivery and Whole Foods

Amazon on Tuesday announced plans to close its physical Amazon Go and Amazon Fresh stores, as the company pivots towards expanding same-day grocery delivery and growing its Whole Foods Market footprint.

The move marks a step back from Amazon’s branded brick-and-mortar grocery formats, which were used to develop and showcase its cashierless Just Walk Out technology. The system tracks items picked up by customers, allowing them to leave the store without going through a traditional checkout process. Amazon said it will continue to invest in the technology but will increasingly offer it to third parties, including concession stands at sports stadiums, rather than operating its own stores.

In a blog post announcing the decision, the company said that while there had been encouraging signs at its Amazon-branded physical grocery stores, it had not yet created a sufficiently distinctive customer experience with an economic model that could support large-scale expansion.

Amazon said the closures will not affect customers who rely on the platform for grocery delivery services.

The decision follows a broader pullback from physical retail over recent years. When Amazon shut some stores in 2024, a company spokesperson said at the time that the economics had not worked due to lease costs.

Despite the closures, Amazon said it is not exiting physical retail entirely. Instead, it plans to build on the stronger brand affinity consumers have with Whole Foods Market compared with Amazon Go convenience stores.

The company said it will open more than 100 new Whole Foods Market locations over the next few years. Since Amazon acquired Whole Foods in 2017, the chain has expanded to about 550 stores and recorded more than 40 percent sales growth.