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Amazon to close Amazon Go, Amazon Fresh stores, focus on Whole Foods and online grocery delivery
Amazon said it's closing all of its Amazon Go and Amazon Fresh locations, as the online behemoth focuses on its grocery delivery, Whole Foods Market and a new "supersized" store concept.
The Seattle-based online retailer said Tuesday in a blog post that it plans to convert some of those soon-to-be shuttered locations into Whole Foods Market stores. The company operates 57 Amazon Fresh stores and 15 Amazon Go stores.
"While we've seen encouraging signals in our Amazon-branded physical grocery stores, we haven't yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion," the company said in the post.
Amazon noted that customers can continue to shop Amazon Fresh online in available areas for "fast and convenient delivery."
The last day of operation for Amazon Fresh and Amazon Go stores is Feb. 1, with the exception of its California locations, which will remain open longer to comply with state requirements, Amazon said.
Since Amazon's purchase of Whole Foods Market in 2017, it's seen more than 40% sales growth and expansion to more than 550 locations, it said. It now plans to open more than 100 new Whole Foods Market stores over the next few years.
At the same time, shoppers are turning to online delivery for everyday essentials and fresh food, Amazon said.
The online retailer is now delivering groceries to 5,000 U.S. cities and towns, including thousands served by same-day delivery where customers can shop produce and other perishables along with staples. Based on strong customer feedback, it said it plans to expand its same-day delivery service of fresh groceries to more areas this year.
Still, Amazon pledges to continue to experiment with new physical store formats.
The company revealed on Tuesday its plans to open a "new supercenter" physical retail concept designed for customers to shop Amazon's broad selection across fresh groceries, household essentials, and general merchandise. The company didn't provide any other details including the timing of the opening.
Amazon also is testing a new in-store format called Amazon Grocery, which it launched alongside Whole Foods Market in Chicago. This concept at Whole Foods Market in Plymouth Meeting, Pennsylvania, lets customer also shop for groceries and household essentials from Amazon
Amazon opened its first Amazon Go concept in 2018 in Seattle, letting shoppers take milk, potato chips or ready-to-eat salads off its shelves and just walk out. Amazon's technology charges customers after they leave.
It said that it's gathered valuable insights along the way.
For example, its Amazon Go locations served as "innovation hubs" where it developed "just walk out" technology-now a checkout solution operating in more than 360 third-party locations across five countries.
Amazon said it is expanding its "just walk out" technology to Amazon's own operations, with more than 40 North American fulfillment centers using it in breakrooms, helping employees grab meals without checkout delays. More are planned this year.
Amazon introduced its first Amazon Fresh physical store in 2020. The stores feature an assortment of national brands, produce, meat and seafood.
Source: EconomicTimes
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