Amazon to Shut Down Go and Fresh Stores as It Focuses on Whole Foods and Delivery
In a move aimed at streamlining its retail operations, Amazon has announced that it will be closing all 57 Amazon Fresh locations and 15 Amazon Go stores nationwide. The decision comes after the company reassessed its strategy for physical grocery stores and determined that it needed to focus on more promising avenues, such as grocery delivery and Whole Foods Market.
The closures are expected to take effect by February 1, except for a handful of locations in California that will remain open due to state requirements. However, customers will still be able to shop Amazon Fresh online in available areas for fast and convenient delivery.
Amazon's decision is largely driven by its experience with grocery delivery, which has seen significant growth since the company launched its service. According to Amazon, it now delivers groceries to over 5,000 US cities and towns, including thousands served by same-day delivery. As a result, the company plans to expand its same-day delivery service of fresh groceries to more areas in the coming year.
The shutdown of physical stores also signals that Amazon is shifting its focus towards new retail concepts, such as its "supersized" store format, which aims to provide customers with a broader selection across fresh groceries, household essentials, and general merchandise. Although no specific details have been revealed about this concept, it's clear that Amazon remains committed to experimenting with new physical store formats.
Amazon Go stores, which were launched in 2018, initially allowed customers to pick up products without checkout, but the company has gathered valuable insights from their operations. This expertise will now be applied to more of its own facilities, including breakrooms where employees can grab meals without having to navigate a traditional checkout process.
Meanwhile, Amazon Fresh stores, which were introduced in 2020, have been providing customers with an assortment of national brands and fresh produce. The closure of these locations marks the end of an experiment that has yielded mixed results for the company.
As Amazon moves forward, it's clear that its focus is on delivering groceries efficiently to more areas, particularly through its online platform. With plans to open over 100 new Whole Foods Market stores in the coming years, it remains to be seen how this strategy will play out for the retailer.
In a move aimed at streamlining its retail operations, Amazon has announced that it will be closing all 57 Amazon Fresh locations and 15 Amazon Go stores nationwide. The decision comes after the company reassessed its strategy for physical grocery stores and determined that it needed to focus on more promising avenues, such as grocery delivery and Whole Foods Market.
The closures are expected to take effect by February 1, except for a handful of locations in California that will remain open due to state requirements. However, customers will still be able to shop Amazon Fresh online in available areas for fast and convenient delivery.
Amazon's decision is largely driven by its experience with grocery delivery, which has seen significant growth since the company launched its service. According to Amazon, it now delivers groceries to over 5,000 US cities and towns, including thousands served by same-day delivery. As a result, the company plans to expand its same-day delivery service of fresh groceries to more areas in the coming year.
The shutdown of physical stores also signals that Amazon is shifting its focus towards new retail concepts, such as its "supersized" store format, which aims to provide customers with a broader selection across fresh groceries, household essentials, and general merchandise. Although no specific details have been revealed about this concept, it's clear that Amazon remains committed to experimenting with new physical store formats.
Amazon Go stores, which were launched in 2018, initially allowed customers to pick up products without checkout, but the company has gathered valuable insights from their operations. This expertise will now be applied to more of its own facilities, including breakrooms where employees can grab meals without having to navigate a traditional checkout process.
Meanwhile, Amazon Fresh stores, which were introduced in 2020, have been providing customers with an assortment of national brands and fresh produce. The closure of these locations marks the end of an experiment that has yielded mixed results for the company.
As Amazon moves forward, it's clear that its focus is on delivering groceries efficiently to more areas, particularly through its online platform. With plans to open over 100 new Whole Foods Market stores in the coming years, it remains to be seen how this strategy will play out for the retailer.