"And now, after only half a decade in operation, the online retail giant has announced it's closing its physical Amazon Fresh and Amazon Go-branded stores. The two concepts were each built to serve a different niche, with Amazon Fresh, launched in 2020, being more of a traditional brick-and-mortar grocery store, and Amazon Go, which first opened in 2018, being a convenience store."
"The press release says that while Amazon Fresh and Go have shown some promise, "we haven't yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion." Instead, many of the stores will be converted into the more successful Amazon-owned Whole Foods, which has seen big growth over the past decade. That amounts to just over 70 Amazon Fresh and Go locations closing, although it's not clear how many will become Whole Foods."
"But if you're a fan of Amazon Fresh delivery, that is sticking around for now. The company says its grocery delivery has been growing rapidly, and part of this move is about doubling down on what Amazon does best. With customers not really getting the difference between Amazon Fresh and Whole Foods, it looks like the company is trying to clearly differentiate between its Amazon brand for online shopping and Whole Foods for physical locations."
Amazon is closing its physical Amazon Fresh and Amazon Go stores after roughly five years of operation. The two concepts served different niches: Amazon Fresh was a traditional grocery store launched in 2020, and Amazon Go was a convenience store that opened in 2018. The company concluded the physical stores did not deliver a distinctive customer experience or an economic model suitable for large-scale expansion. More than 70 Amazon Fresh and Go locations will close, with many set to convert into Whole Foods stores. Amazon Fresh grocery delivery will continue and the Whole Foods Market Daily Shop 'grab-and-go' concept will expand.
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