Amazon Shutters Physical Amazon Go and Fresh Stores in Major Grocery Strategy Overhaul

Amazon is undertaking a major restructuring of its grocery business, announcing the closure of all its physical Amazon Go and Amazon Fresh store locations across the United States. The decision marks a significant strategic pivot for the retail giant as it exits from operating its own network of physical supermarkets and convenience stores.

This nationwide closure of underperforming locations is part of a broader effort to streamline operations and improve profitability in a highly competitive grocery sector. According to an internal memo from the company's grocery leadership, the restructuring will allow Amazon to concentrate resources on its most promising growth areas: expanding its same-day and ultrafast grocery delivery services and strengthening its Whole Foods Market business.

The move reflects the company's recalibrated focus toward delivery and logistics over maintaining a large, capital-intensive brick-and-mortar footprint. While Amazon's cashierless "Just Walk Out" technology debuted in Amazon Go stores, the company will now seek to apply this automation in other venues and through partnerships. The closures signify the end of a large-scale experiment in physical retail and a renewed emphasis on online grocery, where Amazon faces stiff competition from rivals like Walmart and Instacart.