Amazon is Shutting Down Its Fresh Grocery Stores Nationwide as It Focuses on Whole Foods and Speedier Delivery.
In a statement this week, Amazon revealed that it will be closing all of its 58 Fresh grocery stores across the US by February 1. This move comes as the company looks to expand its Whole Foods Market chain and invest in its speedier grocery delivery service. While Amazon Fresh first launched in Los Angeles back in 2020, it's been struggling to gain traction.
According to Amazon, its Amazon-branded physical grocery stores haven't yet created a "truly distinctive customer experience" with the right economic model needed for large-scale expansion. This news has left customers and employees of the Fresh stores concerned about their futures. However, not all Fresh locations will be closing β some will be converted into Whole Foods Markets.
Amazon plans to open over 100 new Whole Foods stores in the coming years, which is a significant increase from its current number of more than 550 stores since it acquired the chain in 2017. The company has seen sales growth of over 40% at Whole Foods since its acquisition.
For those who had been waiting for the Amazon Fresh store that opened in Northern Liberties back in August, this news means their local grocery shopping experience is coming to an end. However, customers can still shop online and have groceries delivered same-day through Amazon's delivery services.
Amazon has announced plans to offer new roles to former Fresh employees within its other divisions, which may provide some stability for those affected by the store closures.
In a statement this week, Amazon revealed that it will be closing all of its 58 Fresh grocery stores across the US by February 1. This move comes as the company looks to expand its Whole Foods Market chain and invest in its speedier grocery delivery service. While Amazon Fresh first launched in Los Angeles back in 2020, it's been struggling to gain traction.
According to Amazon, its Amazon-branded physical grocery stores haven't yet created a "truly distinctive customer experience" with the right economic model needed for large-scale expansion. This news has left customers and employees of the Fresh stores concerned about their futures. However, not all Fresh locations will be closing β some will be converted into Whole Foods Markets.
Amazon plans to open over 100 new Whole Foods stores in the coming years, which is a significant increase from its current number of more than 550 stores since it acquired the chain in 2017. The company has seen sales growth of over 40% at Whole Foods since its acquisition.
For those who had been waiting for the Amazon Fresh store that opened in Northern Liberties back in August, this news means their local grocery shopping experience is coming to an end. However, customers can still shop online and have groceries delivered same-day through Amazon's delivery services.
Amazon has announced plans to offer new roles to former Fresh employees within its other divisions, which may provide some stability for those affected by the store closures.