Amazon is abandoning its once-hyped cashierless grocery store experiment, closing all Amazon Fresh and Amazon Go locations as the tech giant shifts its focus to rapid grocery delivery and same-day fulfillment.
The move marks a major retreat from Amazon’s brick-and-mortar ambitions that began in 2017 with its $13.7 billion acquisition of Whole Foods, which executives once touted as a gateway to reinventing in-person grocery shopping through automation.
Amazon Go stores were pitched as the future of retail, cashierless locations where customers scanned in, grabbed items, and walked out while technology tracked purchases automatically. Amazon Fresh followed with a similar tech-forward model. But the concept never scaled as promised.
By 2023, Amazon had already slowed expansion and closed several locations, taking a $720 million impairment charge tied to the struggling grocery formats, according to CoStar. On Tuesday, the company confirmed it will now shut down all remaining Amazon Fresh and Amazon Go stores, with some locations converted into traditional Whole Foods Market stores.
In a press release, the company said it already delivers groceries to customers in more than 5,000 cities and towns, with same-day service available in thousands of them. Same-day delivery is now the centerpiece of Amazon’s grocery strategy heading into 2026.
The decision appears driven by performance. Amazon said sales through same-day grocery delivery have increased 40-fold since January 2025.
“Fresh groceries now make up nine of the top 10 most-ordered items in areas where perishable groceries are available for Same-Day Delivery,” the company said.
Amazon also announced plans to roll out an “ultra-fast” delivery option, promising delivery of thousands of essential items, including fresh food in 30 minutes or less, effectively turning its logistics network into a mobile convenience store.
The closures signal a broader reality check for Silicon Valley’s retail automation dreams.
Comments
No comments yet. Be the first to share your thoughts.