Amazon’s Strategic Shift

Amazon has announced that it will close all of its physical Amazon Go and Amazon Fresh grocery stores as part of a broader strategic pivot toward online grocery delivery and expanding its Whole Foods Market brand. The decision affects all remaining Go and Fresh store locations, including both cashier-less convenience sites and traditional supermarket formats.

According to the company’s official announcement, the closures reflect Amazon’s judgment that its Amazon-branded physical grocery stores are not yet economically scalable despite positive customer feedback. The company has chosen to direct its funding into two specific areas which show the highest demand and growth potential: online same-day grocery delivery and its Whole Foods Market chain.

What Happens to Physical Stores

All 57 Amazon Fresh and 15 Amazon Go stores will close or transition to new formats. A number of these locations are slated to be converted into Whole Foods Market stores in the coming years as Amazon scales up its presence in natural and organic foods retailing. Amazon is currently testing new store formats which include:

 

• Amazon Grocery — a supermarket concept in Chicago

 

• A hybrid “store within a store” at a Pennsylvania Whole Foods location

 

The pilot programs demonstrate that Amazon still maintains interest in physical grocery stores while developing new operational methods.

Focus on Delivery

Amazon has expanded its online grocery service to provide Same-Day Delivery to customers in more than 5000 locations across the United States. The company has observed a surge in customer demand for this service, which has led to their plans for service expansion in 2026.

The grocery delivery service matches existing industry trends because customers now prefer convenient delivery services that bring products directly to their homes instead of requiring them to visit physical stores. Amazon delivery service statistics show fresh groceries rank as the most frequently ordered product category.

Broader Retail Context

Amazon has tested different physical retail formats which include bookstores and "4-Star" stores for multiple years before making this decision. The retailer continues to develop new ideas yet considers Whole Foods Market to be its most successful physical grocery store operation at this point.

Amazon's grocery strategy undergoes a major transformation through these store closures which show the company now prefers delivery services and Whole Foods stores instead of its own retail brands.