With the announcement of the closure of all Amazon Fresh and Amazon Go physical store locations across the United States, Amazon is making a significant shift in its grocery strategy. The company plans to focus on delivery services and the expansion of Whole Foods Market, marking the end of its branded grocery and convenience formats that have been in operation for the past decade.
Reasons Behind Amazon’s Decision
#BREAKING: Amazon is closing all of its Amazon Go and Amazon Fresh grocery stores while ramping up online grocery delivery — a sweeping shift that could reshape how millions of Americans shop for food. Details: https://t.co/OlnFcGmVlB pic.twitter.com/NlBKffft17
— KTLA (@KTLA) January 27, 2026
Amazon cited the lack of a distinctive customer experience and a sustainable economic model for wide-scale expansion as reasons for closing its physical stores. The company will continue to offer its online grocery services, including Amazon Fresh delivery, and plans to expand its same-day grocery delivery service for fresh and perishable foods to more U.S. cities and towns in 2026.
CEO Andy Jassy emphasized the importance of delivery growth, noting that online grocery sales, particularly perishables delivered to customers’ doors, are a key focus area. The shift towards expanding same-day delivery aligns with changing consumer shopping habits for food and essentials.
Focus on Whole Foods Market
Following the closure of Amazon Fresh and Go stores, Whole Foods Market will take center stage in Amazon’s physical grocery efforts. The company plans to open over 100 new Whole Foods Market stores in the coming years, including the expansion of the Whole Foods Market Daily Shop format, which offers a curated selection of fresh foods, ready-to-eat meals, coffee, and everyday staples.
Some of the soon-to-close Amazon Fresh and Go stores are expected to be converted into Whole Foods Market locations or rebranded under the Whole Foods umbrella, further integrating the two brands.
Embracing Grocery Delivery and Changing Customer Trends
Photo: Christopher Dilts / Bloomberg via Getty Images FilesOnline grocery delivery will remain a focal point for Amazon, with groceries now deliverable to over 5,000 U.S. cities and towns. The company’s Same-Day Delivery service for fresh foods and household items will be expanded to meet the growing demand for convenient delivery options.
Amazon’s emphasis on perishable grocery sales through its online services reflects changing consumer behavior. Customers increasingly prefer fast and convenient grocery delivery over traditional store visits, a trend that Amazon aims to capitalize on through its online infrastructure.
Exploring Technology and Future Retail Concepts
Amazon is closing all of its Amazon Go and Amazon Fresh physical stores in a shift to focus on its online same-day delivery service https://t.co/NiXWfR70Kv
— The Wall Street Journal (@WSJ) January 27, 2026
While Amazon is closing its Fresh and Go stores, technology developed for these formats will continue to be utilized. The “Just Walk Out” checkout technology pioneered in Amazon Go stores will be expanded into third-party locations like airports and sports venues.
Amazon is also testing new physical retail concepts, such as Amazon Grocery, a store-within-a-store format launched alongside Whole Foods Market in Chicago. Additionally, a supercenter-style store that combines groceries, household essentials, and general merchandise is in the works, although specific details and opening dates have not yet been disclosed.
Impact on Workers and Customers
Amazon is working to support employees affected by the closures, offering options to transfer to other roles within the company’s fulfillment and operations network. Customers who frequent Amazon Fresh and Go stores for in-person shopping will need to transition to the online Fresh services for grocery access via delivery.
Amazon’s grocery business has seen significant growth since acquiring Whole Foods in 2017. With over 550 locations and a sales growth of over 40 percent in late 2025 compared to earlier periods, Amazon is making strategic moves to strengthen its position in the grocery market.
By focusing on delivery and the expansion of Whole Foods, Amazon is prioritizing the most profitable and scalable aspects of its grocery business for future growth. This realignment reflects Amazon’s commitment to innovation and customer satisfaction in the highly competitive grocery industry.
As Amazon continues to evolve its grocery business, it remains a key player in the market, offering customers convenience, quality, and a wide selection of products. With a strong foundation in place, Amazon is poised to further expand its presence in the grocery sector and deliver a seamless shopping experience to customers both online and in-store.
