The BareStory
Amazon announced on Tuesday, January 27, 2026, that it will close its physical Amazon Fresh grocery stores and Amazon Go convenience outlets. As part of the transition, the retailer plans to convert select locations into Whole Foods Market stores. The company confirmed that Amazon Fresh will continue to operate as an online brand for grocery delivery.
In a statement regarding the closures, Amazon explained that although it had observed "encouraging signals" in its branded physical stores, the concepts did not achieve the specific economic model or distinctive customer experience required for large-scale expansion. The company stated the move follows a careful evaluation of its business to prioritize investments. While the total number of affected employees was not disclosed, Amazon said workers would be eligible for severance packages or assistance in finding other roles within its operations network.
Despite closing these specific chains, Amazon affirmed it will continue to invest in brick-and-mortar retail. The company announced plans to open more than 100 new Whole Foods locations over the next few years and expand its smaller Whole Foods Daily Shops format. Additionally, Amazon is developing a "mass physical store format" and recently received approval from local officials in a Chicago suburb to build a large facility offering groceries and general merchandise.
The Amazon Go stores were characterized by cashierless technology that allowed customers to leave without traditional checkout. While the company began removing this system from its grocery stores in 2024, it noted that the technology is currently deployed at hundreds of third-party locations across five countries. This restructuring represents a significant pivot in Amazon's grocery strategy, which has been anchored by its $13.7 billion acquisition of Whole Foods in 2017.
How it may affect me
As a U.S. reader:
• Shoppers who visit physical Amazon Fresh and Go stores will need to find alternative retailers, though select locations will be converted into Whole Foods Markets.
• You will still be able to use Amazon Fresh for home grocery delivery, as the company confirmed the brand will continue operating exclusively as an online service.
• Consumers can expect increased access to Whole Foods Market locations, with plans to open over 100 new stores and expand the smaller Daily Shops format.
• Residents in certain regions may soon access a new mass-market retail format offering both groceries and general merchandise, with initial development approved in a Chicago suburb.
