Amazon Shuts Down Key Grocery Venture as Consumer Behavior Shifts

The online retail giant is realigning its priorities amid a major shift in consumer shopping preferences.

Jan. 27, 2026 at 6:07pm

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Amazon has decided to shut down its experimental Amazon Go and Amazon Fresh physical grocery store ventures, citing challenges in executing a larger expansion of this business model. Instead, the company plans to focus on expanding its Whole Foods Market brand, which has seen strong growth since Amazon's acquisition in 2017. This move aligns with a broader shift in consumer behavior, as more shoppers are prioritizing convenience, speed, and healthier food options when it comes to their grocery purchases.

Why it matters

Amazon's decision to shutter its Amazon Go and Amazon Fresh stores and double down on Whole Foods reflects the changing landscape of the grocery industry. Consumers are increasingly demanding faster delivery, more convenient shopping experiences, and healthier food options - trends that Amazon is aiming to capitalize on by leaning into its Whole Foods brand and expanding same-day grocery delivery.

The details

Amazon opened its first Amazon Go store in 2018 and its first Amazon Fresh store in 2020, but the company says it has not yet created a 'truly distinctive customer experience with the right economic model' to enable large-scale expansion of these experimental formats. Instead, Amazon plans to convert several Amazon Go and Amazon Fresh locations into Whole Foods Market stores and open more than 100 new Whole Foods locations over the next few years to meet growing consumer demand. The company will also open five new Whole Foods Market Daily shops, which are smaller store formats offering grab-and-go food and essentials.

  • Amazon opened its first Amazon Go store in 2018.
  • Amazon opened its first Amazon Fresh store in 2020.
  • Amazon plans to expand same-day grocery delivery to new cities and towns in 2026.
  • Amazon plans to open more than 100 new Whole Foods Market locations over the next few years.
  • Amazon will open five new Whole Foods Market Daily shops.

The players

Amazon

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Whole Foods Market

An American supermarket chain that specializes in selling organic and natural foods, which was acquired by Amazon in 2017.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

Kroger

An American retail company that operates supermarkets and multi-department stores.

Dominick Miserandino

The CEO of RTMNexus, a company that provides insights on retail and consumer trends.

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What they’re saying

“People want easy. If you can get what you need faster, with less effort and fewer decisions, that's where shoppers go. Convenience isn't a bonus anymore, it's the expectation.”

— Dominick Miserandino, CEO, RTMNexus (TheStreet)

What’s next

Amazon plans to expand its same-day grocery delivery to new cities and towns in 2026, and the company will open more than 100 new Whole Foods Market locations over the next few years.

The takeaway

Amazon's decision to shutter its Amazon Go and Amazon Fresh stores and focus on expanding its Whole Foods brand reflects the growing consumer demand for convenience, speed, and healthier food options in the grocery industry. This shift aligns with broader trends, such as the increasing popularity of same-day delivery and the rising consumer interest in natural and organic products.