Amazon announced on January 27, 2026 that it will shut down its Amazon Go and Amazon Fresh brick-and-mortar locations and redirect resources toward same-day grocery delivery and its Whole Foods Market chain.
At a Glance
- Amazon Go and Fresh stores will close, ending the company’s cashierless convenience store experiment.
- The firm will grow its Whole Foods footprint, opening more than 100 new stores.
- Same-day delivery capacity will be expanded across the U.S.
- Why it matters: The shift signals a strategic pivot from proprietary retail to leveraging established brands and technology for broader market reach.
Closing Amazon Go and Fresh
The decision to shutter Amazon Go and Fresh stores came after a period of mixed performance. These locations were meant to showcase Amazon’s Just Walk Out technology, which lets shoppers pick items and leave without a traditional checkout. While the technology works, the stores struggled to deliver a distinct customer experience that could justify the high costs of real-estate leases.
An Amazon spokesperson explained, “couldn’t make the economics work with the lease cost.” This statement reflects the broader trend of Amazon trimming its physical retail presence in recent years, including the closure of several stores in 2024.
Why the Move?
In a blog post, Amazon noted, “While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion.” The company is therefore redirecting its focus to third-party deployments of its cashierless technology, such as concession stands at sports stadiums.
The shift also aligns with Amazon’s assessment that consumers associate more strongly with the Whole Foods brand than with Amazon Go. Whole Foods has already demonstrated robust growth, reporting over 40% sales growth since its acquisition in 2017 and expanding to 550 stores.
Expanding Whole Foods and Delivery
Amazon plans to open more than 100 new Whole Foods stores over the next few years. In addition, the company will launch Whole Foods Market Daily Shop locations-compact stores emphasizing grab-and-go meals and convenience items. These Daily Shops mirror the concept behind Amazon Go and Fresh but benefit from the established Whole Foods brand.
| Initiative | Current Footprint | Planned Expansion |
|---|---|---|
| Whole Foods Stores | 550 | +100 (next few years) |
| Whole Foods Daily Shop | N/A | New openings (timeline TBD) |
| Same-Day Delivery | Existing network | Expanded capacity across U.S. |
Impact on Customers
Customers who use Amazon for grocery delivery will not experience any service disruptions. The closures affect only the physical retail experience. The company’s emphasis on delivery and Whole Foods should provide a seamless transition for shoppers who prefer online ordering or the Whole Foods brand.
Key Takeaways
- Amazon is ending its own convenience store chain to focus on technology and brand partnerships.
- The company will invest heavily in Whole Foods, leveraging its strong brand and proven growth.
- Same-day delivery will receive additional capacity to meet rising demand.
- The shift reflects a broader strategy to align retail operations with economic realities and consumer preferences.
