Amazon Shutters Fresh Stores, Pivots to Whole Foods and Delivery

The tech giant is closing its Amazon Fresh supermarkets and Go convenience stores to focus on growth areas.

Jan. 27, 2026 at 10:47am

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Amazon announced it is closing its Amazon Fresh supermarket chain and Amazon Go convenience stores, with plans to convert some locations into Whole Foods stores. The company cited a lack of a "truly distinctive customer experience" and the right economic model for large-scale expansion as reasons for the closures. Amazon will now focus its grocery efforts on growing Whole Foods and expanding its delivery capabilities.

Why it matters

This move represents a significant shift in Amazon's grocery strategy after nearly a decade of trying to build its own branded supermarket model. It signals the company is pivoting away from its Amazon-branded stores to double down on the Whole Foods brand and delivery, which have proven more successful. The closures also highlight the challenges Amazon has faced in carving out a larger share of the highly competitive grocery market.

The details

Amazon said it will close around 60 Amazon Fresh supermarkets and 15 Amazon Go convenience stores. Some Fresh locations will be converted into Whole Foods stores as the company looks to prioritize investment in "growth areas." Amazon acknowledged it has "seen encouraging signals" in its Amazon-branded grocery stores but has "not yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion."

  • Amazon opened the first Amazon Go location to the public in 2018.
  • Amazon opened the first Amazon Fresh store in 2020.
  • Amazon announced the Fresh and Go store closures on January 27, 2026.

The players

Amazon

A major tech and retail company that has been trying to build its own grocery store model for nearly a decade, including the Amazon Fresh supermarket chain and Amazon Go convenience stores.

Whole Foods

A high-end grocery store chain that Amazon acquired in 2017 and will now focus on expanding, with plans to open over 100 new Whole Foods locations in the next few years.

Walmart

A major competitor in the grocery space that has emerged as a source of inspiration for Amazon's grocery business strategy lately, with Amazon planning to build a Walmart Supercenter-like megastore near Chicago.

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What’s next

Amazon plans to open over 100 new Whole Foods supermarkets "over the next few years" and launch five new Whole Foods Market Daily Shop stores in 2026, offering a pared-down selection of groceries in smaller stores. The company is also working on expanding its grocery delivery capabilities this year.

The takeaway

Amazon's decision to shutter its Amazon Fresh and Go stores and pivot to focusing on Whole Foods and delivery represents a major shift in the company's grocery strategy. It highlights the challenges Amazon has faced in building a successful branded supermarket model and signals the company will now double down on its more proven grocery assets like Whole Foods and delivery to compete in the highly competitive grocery market.