Amazon is pulling the plug on its entire Amazon Go and Amazon Fresh store formats in the United States, marking a dramatic pivot in its grocery business. This move impacts 57 Fresh stores and 15 Go locations.
Announced in a blog post on Tuesday from its Seattle headquarters, Amazon is closing these stores to refocus on grocery delivery, Whole Foods Market, and a new “supersized” store concept, with most locations shuttering by February 1 except in California due to state regulations.
According to the Daily Mail, the decision reflects a broader trend of shoppers leaning toward online delivery for essentials and fresh food. Amazon already delivers groceries to 5,000 US cities and towns, often with same-day options for produce and perishables. The company plans to expand this service further this year based on strong customer feedback.
Amazon’s journey in physical grocery retail began with the opening of its first Amazon Go store in Seattle in 2018. These stores, dubbed “innovation hubs” by the company, pioneered the “just walk out” technology, allowing customers to grab items like milk or salads and leave without a checkout. This tech now operates in over 360 third-party locations across five countries.
The Amazon Fresh concept launched in 2020, offering national brands alongside meat and produce. However, the company admitted it hasn’t found a “truly distinctive customer experience” with the right economic model for large-scale growth. This follows the closure of all 19 Fresh stores in the UK last September.
Since acquiring Whole Foods Market in 2017, Amazon has seen over 40% sales growth and expanded to more than 550 locations. The company plans to open over 100 new Whole Foods stores in the coming years. Some closing Fresh and Go locations will convert into Whole Foods outlets.
Despite these efforts, Amazon’s grocery business, including Whole Foods, holds less than 4% of the US market share. The company is now experimenting with new formats like a store-within-store model in Chicago, where a 3,800-square-foot Amazon Grocery storefront sits below a Whole Foods. This setup offers everyday items not typically found in Whole Foods.
Amazon also teased a “new supercenter” concept for fresh groceries, household essentials, and general merchandise in one location. Details on timing or specific locations remain undisclosed. Meanwhile, customers in some areas can still access Amazon Fresh online for what the company calls “fast and convenient delivery.”
The broader shift raises questions about the viability of tech-driven retail experiments. While Amazon pushes its “just walk out” technology into over 40 North American fulfillment centers for employee breakrooms, with more planned for 2026, the core grocery strategy seems to be pivoting hard toward delivery.
Critics argue this retreat from physical stores signals a misstep in Amazon’s attempt to dominate every corner of retail. The company’s struggle to crack the grocery market, despite its vast resources, suggests that consumer behavior isn’t as malleable as tech giants might hope. Physical shopping, especially for food, still holds a tactile appeal that algorithms can’t fully replace.
From a free-market perspective, Amazon’s focus on delivery and Whole Foods makes sense—cut losses on underperforming formats and double down on proven demand. But skeptics worry this move cedes ground to traditional grocers who’ve mastered the in-store experience. Is Amazon abandoning innovation for convenience? Investors should note the grocery sector’s brutal margins and high competition. Amazon’s pivot could free up capital for higher-return bets like delivery logistics or tech licensing. Yet, the lack of detail on the “new supercenter” leaves uncertainty about the long-term vision.
For consumers, the closure of 70 stores might limit local options, especially if you relied on Amazon Fresh for quick stops. However, expanded same-day delivery could offset this, assuming your area is covered. Check Amazon’s online portal to see if “fast and convenient” options are available near you.
From a wealth-building angle, Amazon’s struggles highlight the importance of diversification in retail investments. Don’t bet on one format or company to dominate—look at ETFs or stocks tied to logistics and e-commerce infrastructure instead. Amazon’s delivery push might signal bigger opportunities there.
Ultimately, this shift shows markets rewarding efficiency over experimentation. Amazon’s willingness to kill off formats that don’t scale is a lesson in frugality and focus—principles worth applying to your own financial strategy. Stay nimble, cut what doesn’t work, and invest in what does.