Amazon has announced that it will close every Amazon Go and Amazon Fresh store, with the final closures scheduled for Sunday, February 1, 2026. California locations will remain open for an additional 45 days to comply with state labor regulations. The company will convert many of the former Amazon‑branded sites into Whole Foods Market supermarkets or Daily Shop formats, while expanding its same‑day grocery delivery network.
The announcement specifies that 57 Amazon Fresh locations and 15 Amazon Go convenience stores will shut down. The closures are part of a broader strategy that sees Amazon investing more heavily in the Whole Foods brand, which has grown to 550 stores since the 2017 acquisition and is projected to add over 100 new stores in the coming years. Amazon also plans to accelerate its perishable‑grocery delivery service, which has seen perishable sales grow 30‑40 times since January 2025.
Amazon’s decision reflects a pivot away from its own branded physical grocery formats, which have not yet achieved a profitable, scalable model. By consolidating under Whole Foods, Amazon leverages a well‑established brand that already commands strong customer loyalty and a proven same‑day delivery infrastructure. The company’s grocery market share—estimated at roughly 3%—remains modest, but the shift signals a focus on high‑margin, high‑frequency sales that can be supported by Amazon’s logistics network.
Management emphasized that the closures are a “careful evaluation of the business and how we can best serve customers.” The move is expected to free up capital and reduce operating costs associated with the Amazon‑branded stores, while allowing Amazon to invest in technology licensing—such as its “Just Walk Out” system—to third‑party retailers. The company also plans to continue expanding its delivery footprint, which has become a key growth engine for its broader e‑commerce business.
The broader grocery landscape remains highly competitive, with Walmart, Kroger, Costco, and Albertsons all vying for market share. Amazon’s focus on Whole Foods and same‑day delivery positions it to compete more directly on convenience and premium product offerings, while its technology licensing strategy could generate additional revenue streams and strengthen relationships with other retailers.
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