Amazon is making a big shift in its grocery strategy. The company is closing its Amazon Fresh and Amazon Go stores—around 70 locations across the U.S. This decision comes as Amazon aims to streamline its approach under the Whole Foods brand.
In a recent blog post, Amazon acknowledged that while some stores showed promise, they didn’t create a unique shopping experience that justifies large-scale growth. In fact, some of these locations will be transformed into Whole Foods Market stores, with plans to add another 100 Whole Foods locations in the coming years, including a new concept called Whole Foods Market Daily Shop.
The company is also focused on its employees during this transition. Amazon is attempting to help affected workers find new roles within its vast operations network.
As part of its new strategy, Amazon is experimenting with different store formats. One notable project is a store-within-a-store concept in Illinois that combines Amazon Grocery with Whole Foods. There’s also a new large retail space being developed in a Chicago suburb, similar in size and scope to Walmart stores.
Experts have weighed in on this change. Neil Saunders, a managing director at GlobalData, pointed out that Amazon Fresh and Go struggled to offer shoppers compelling reasons to visit. He noted that Fresh felt just like other grocery stores, and the technology used in Go didn’t resonate with shoppers.
This is not the first time Amazon’s grocery efforts have changed. In the past, the company has tried various partnerships for grocery delivery, but those often confused customers due to different checkout processes and added delivery fees.
Amazon has developed private labels like Amazon Grocery and Amazon Saver to compete against budget chains like Aldi and Lidl. Plus, they recently introduced same-day delivery for fresh food in over 2,000 cities. Despite the closure of these stores, it’s essential to note that Amazon’s grocery segment continues to thrive. The grocery market is now a staggering $150 billion industry, with Amazon gaining more than 150 million shoppers—fighting hard against industry giant Walmart.
In conclusion, Amazon’s grocery strategy is evolving, focusing on what they do best while learning from past challenges. The shift may seem drastic, but it’s part of a larger plan to strengthen their market position.
For more insights on this topic, you can check out this report on [Amazon’s growth in the grocery sector](https://www.geekwire.com/2026/amazon-supersizes-its-walmart-rivalry-with-new-big-box-retail-concept/).
