Amazon Closes Amazon Fresh and Go Stores to Focus on Whole Foods Expansion

Amazon.com Inc. announced on January 27, 2026, that it will close its Amazon Fresh and Amazon Go stores across the U.S. The company stated that some of these locations will be converted into Whole Foods Market stores.

The decision reflects a strategic shift to focus on the Whole Foods brand as a core component of Amazon's physical retail footprint. Amazon cited the need to develop a customer experience that supports large-scale expansion and profitability.

The closure affects 57 Amazon Fresh and 15 Amazon Go stores. Amazon plans to open more than 100 new Whole Foods locations over the next few years and expand same-day grocery delivery to more communities.

Why the Move Happened

Amazon Fresh and Amazon Go stores struggled to achieve the scale and economic model needed for long-term success, according to the company. Amazon Go, which introduced a checkout-free shopping experience, was technologically advanced but could not justify broader rollout due to high costs and limited scalability.

The company said it will continue to invest in its grocery business through online delivery and physical Whole Foods locations. Amazon emphasized its growing ability to deliver perishable goods within a day, a service it plans to expand in 2026.

Amazon's retail strategy has seen multiple adjustments over the past decade. After initial forays into physical bookstores and other retail formats, the company has shifted focus to proven assets like Whole Foods.

How the Strategy Fits into Amazon's Broader Goals

Amazon aims to compete more directly with traditional mass retailers like Walmart by expanding its physical presence. The company is developing a new mass retail format, including a large supercenter in the Chicago area.

Amazon's leadership believes the Whole Foods brand, combined with its logistics and delivery capabilities, can help it capture a larger share of the grocery market. The company already serves over 5,000 U.S. cities with same-day delivery, including perishable items.

By focusing on Whole Foods and expanding its delivery infrastructure, Amazon hopes to improve profitability while addressing the challenges of delivering perishable goods at scale.

What Analysts Are Watching Next

Analysts are closely watching whether Amazon can successfully scale its grocery delivery service and how it will integrate its online and offline operations. Dan Ives of Wedbush Securities said the move is a significant step in Amazon's strategy to gain market share in perishable goods.

The company's ability to compete with traditional retailers like Walmart, Target, and Costco will depend on its execution of this new strategy. Amazon's CEO, Andy Jassy, has stated the company's goal is to become a top-three grocery retailer in the U.S.

The retail sector is also watching for further developments in Amazon's physical retail experimentation, including its plans for a new supercenter format. Analysts are evaluating whether Amazon can overcome the high costs and logistical challenges of physical grocery retail.

Amazon's move to close its Amazon Fresh and Go stores while expanding Whole Foods and delivery services reflects a broader trend in the retail industry. As e-commerce companies look to compete with traditional retailers, the integration of online and offline experiences will become increasingly important.