Amazon Plans to Shut Down Its Fresh Grocery and Go Convenience Stores

Amazon to Close Its Own Grocery and Automated Stores

Amazon.com (AMZN) has announced it will be shutting down its Amazon-branded grocery outlets and its cashierless Amazon Go locations, signaling a major shift away from its previous ambitions in physical retail.

According to a statement released on Tuesday, both Amazon Fresh and Amazon Go stores are set to close. Some of these sites will be repurposed as Whole Foods Market stores.

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“Although our Amazon-branded grocery stores have shown some positive signs, we have not yet achieved a unique customer experience or a sustainable business model that would support significant growth,” the company explained.

This decision is the latest in a series of steps back from Amazon’s physical retail ventures. Since its unexpected launch of a brick-and-mortar bookstore in 2015, Amazon has gradually exited from bookstores, its Amazon 4-Star stores featuring a mix of products, mall-based electronics kiosks, and a short-lived clothing shop.

Currently, Amazon operates 14 Amazon Go stores, which utilize cameras to monitor what shoppers pick up, and 58 Amazon Fresh grocery locations. The company has stated it will assist affected employees in finding new roles within Amazon.

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