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NEW YORK — Amazon has announced a strategic shift by deciding to close all its Amazon Go and Amazon Fresh outlets. The retail giant is now turning its attention toward enhancing its grocery delivery services, expanding Whole Foods Market, and exploring a new, larger store concept.
In a blog post on Tuesday, the Seattle-based company revealed plans to transform some of the soon-to-be-closed stores into Whole Foods Market locations. Currently, Amazon operates 57 Amazon Fresh and 15 Amazon Go stores.
“Despite promising signs at our Amazon-branded physical grocery stores, we have yet to establish a unique customer experience paired with an effective economic model for large-scale growth,” Amazon explained in the post.
Amazon assured customers that they could still enjoy the convenience of Amazon Fresh online shopping with speedy delivery available in certain areas.
The stores are set to cease operations on February 1, except for those in California, which will remain open longer to meet state regulations, according to Amazon’s statement.
Since Amazon’s purchase of Whole Foods Market in 2017, it’s seen more than 40% sales growth and expansion to more than 550 locations, it said. It now plans to open more than 100 new Whole Foods Market stores over the next few years.
At the same time, shoppers are turning to online delivery for everyday essentials and fresh food, Amazon said.
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The online retailer is now delivering groceries to 5,000 U.S. cities and towns, including thousands served by same-day delivery where customers can shop produce and other perishables along with staples. Based on strong customer feedback, it said it plans to expand its same-day delivery service of fresh groceries to more areas this year.
Still, Amazon pledges to continue to experiment with new physical store formats.
The company revealed on Tuesday its plans to open a “new supercenter” physical retail concept designed for customers to shop Amazon’s broad selection across fresh groceries, household essentials, and general merchandise. The company didn’t provide any other details including the timing of the opening.
Amazon also is testing a new in-store format called Amazon Grocery, which it launched alongside Whole Foods Market in Chicago. This concept at Whole Foods Market in Plymouth Meeting, Pennsylvania, lets customer also shop for groceries and household essentials from Amazon
Amazon opened its first Amazon Go concept in 2018 in Seattle, letting shoppers take milk, potato chips or ready-to-eat salads off its shelves and just walk out. Amazon’s technology charges customers after they leave.
It said that it’s gathered valuable insights along the way.
For example, its Amazon Go locations served as “innovation hubs” where it developed “just walk out” technology-now a checkout solution operating in more than 360 third-party locations across five countries.
Amazon said it expanding its “just walk out” technology to Amazon’s own operations, with more than 40 North American fulfillment centers using it in breakrooms today, and more planned for 2026, helping employees grab meals without checkout delays.
Amazon introduced its first Amazon Fresh physical store in 2020. The stores features an assortment of national brands and produce, meat and seafood.
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