Amazon (NASDAQ:AMZN) is shuttering its entire fleet of Amazon Fresh and Amazon Go brick-and-mortar stores, marking a dramatic retreat from its eponymous physical grocery brands in favor of a revamped retail strategy focused on Whole Foods and a new “supersized” store concept.
The Seattle-based retailer announced the move Tuesday, confirming it will close all 57 Amazon Fresh locations and 15 Amazon Go stores.
Some of these sites will be converted into Whole Foods Market locations, as the company pivots toward brands and formats that have demonstrated stronger economic viability.
The decision signals a major shift for a company that once aimed to disrupt the traditional supermarket industry with "Just Walk Out" technology.
Since its 2017 acquisition of Whole Foods, Amazon has seen that brand grow more than 40% in sales, expanding to 550 locations.
The company now plans to open more than 100 additional Whole Foods stores over the next several years.
Despite the physical store closures, Amazon is intensifying its digital efforts.
The company currently delivers groceries to 5,000 U.S. cities and plans to expand same-day delivery for perishables throughout 2026, citing strong demand for online essentials.
The company isn't exiting the physical world entirely, however.
Amazon teased the launch of a “new supercenter” physical retail concept.
This "supersized" format is designed to merge fresh groceries with a broad selection of household essentials and general merchandise, though specific locations and timelines were not disclosed.
Amazon is also testing a "store-within-a-store" concept called Amazon Grocery.
Currently being trialed in Chicago and Pennsylvania, this allows Whole Foods shoppers to access a wider range of Amazon’s grocery and household inventory without leaving the building.