On Tuesday, January 27, Amazon announced major strategic shifts in its operations and expansion plans. The shopping brand is doubling down on online grocery delivery and is expanding the Whole Foods Market experience to more customers. As part of the shift, Amazon will close its Amazon Go and Amazon Fresh brick-and-mortar locations.
Amazon Shuts Amazon Go and Fresh Locations in Strategic Shift
Amazon, a global retail chain popularly known for its variety of products, affordable prices, and fast deliveries, is reshaping its business model. The company is prioritizing online grocery delivery and continued expansion of Whole Foods Market.
According to the official announcement, the company is stepping away from Amazon-branded physical grocery stores in favor of faster delivery options. This will also provide broader access to the Whole Foods experience. The brand plans to convert selected sites into Whole Foods Market stores while prioritizing investment in delivery services and the Whole Foods brand.
While Amazon said its Amazon Go and Amazon Fresh stores provided valuable insights, the formats did not achieve a scalable economic model. As a result, the company will close those stores and redirect resources toward higher-performing parts of its business. Amazon Fresh will continue to operate online in eligible markets.
The company also confirmed it will support affected employees by helping them find roles elsewhere within Amazon where possible.
Currently, Amazon offers grocery delivery in more than 5,000 U.S. cities and towns, including thousands served by Same-Day Delivery. The company said it plans to expand same-day delivery of fresh groceries to additional communities in 2026, following strong customer demand.
Amazon Expands Access to Whole Foods Market Nationwide
At the same time, Amazon is increasing its focus on Whole Foods Market, which it acquired in 2017. Whole Foods now operates more than 550 stores and has recorded over 40% sales growth since the acquisition. Amazon plans to open more than 100 new Whole Foods locations over the next few years.
Expansion efforts also include Whole Foods Market Daily Shop, a smaller-format concept offering grab-and-go meals, coffee, and everyday essentials. Five ‘Daily Shop’ locations are currently open, with five more planned by the end of 2026.
Amazon said it will continue testing new physical retail concepts, including Amazon Grocery locations launched in Chicago and “store-within-a-store” formats inside select Whole Foods locations. The company is also exploring a new supercenter-style concept combining groceries, household essentials, and general merchandise.
In addition to Same-Day Delivery, Amazon is testing an ultra-fast service called Amazon Now, which delivers thousands of essential items, including fresh food, in about 30 minutes or less in select cities. The service is designed to replicate the convenience of a neighborhood convenience store with doorstep delivery.
With the shift away from Amazon Go and Amazon Fresh stores and a renewed focus on Whole Foods, the company says its goal is to make grocery shopping faster, easier, and more affordable.
