Amazon makes surprise move in the grocery world

Published: Tuesday, January 27, 2026 at 7:33 pm

Amazon Shuts Down Amazon Go and Fresh Stores, Shifts Grocery Strategy

SEATTLE - Amazon is making a significant shift in its grocery strategy, announcing the closure of all its Amazon Go and Amazon Fresh grocery stores. The company revealed the decision on Tuesday, citing a desire to concentrate on grocery delivery and other store formats.

Amazon currently operates 57 Amazon Fresh stores and 15 Amazon Go locations across the United States. The majority of these stores are slated to close by February 1st, with some California locations remaining open slightly longer due to state regulations.

The company stated that despite experimenting with new concepts in the Go and Fresh stores, it was unable to achieve the necessary success to warrant further expansion. Amazon acknowledged that it had not yet "created the right customer experience with the right economic model."

This move signals the end of an era for the cashier-free Amazon Go stores, which debuted in 2018. These stores allowed customers to purchase items and leave without traditional checkout lines, utilizing "Just Walk Out" technology. While the Go stores are closing, the technology itself is still in use in numerous other locations.

Amazon plans to redirect its investments towards Whole Foods Market, the grocery chain it acquired in 2017. The company intends to open over 100 new Whole Foods stores in the coming years. Some of the closing Fresh store locations may be repurposed into new Whole Foods stores.

In addition to expanding its physical presence through Whole Foods, Amazon will also focus on growing its same-day grocery delivery service. The company already offers this service in thousands of U.S. cities and aims to expand it further by 2026.

Amazon is working to assist employees affected by the closures, though the exact number of job losses is unknown. The company indicated that some employees may be offered alternative roles within Amazon.

Industry analysts suggest that this strategic shift reflects evolving consumer shopping habits, with a growing preference for online grocery purchases. Amazon's emphasis on delivery and Whole Foods expansion indicates its belief in these areas for future growth.

BNN's Perspective: Amazon's decision to shutter its Go and Fresh stores is a bold move, but one that makes sense in the current market. While the cashier-free technology was innovative, the economics of these stores apparently didn't align with Amazon's long-term goals. Focusing on Whole Foods, a brand with established customer loyalty, and expanding delivery services seems like a pragmatic approach to capitalize on the changing grocery landscape.

Keywords: Amazon, Amazon Go, Amazon Fresh, grocery stores, closures, Whole Foods, grocery delivery, Just Walk Out technology, online grocery shopping, retail strategy, business strategy, expansion, same-day delivery

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