Economy

Amazon to Close Physical Fresh and Go Stores in Grocery Business Restructuring

Illustration for: Amazon to Close Physical Fresh and Go Stores in Grocery Business Restructuring
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Jan 28, 2026

THE BARE STORY

Amazon is restructuring its grocery division, a move that includes closing all physical Amazon Fresh and Amazon Go convenience stores. While the physical storefronts will shutter, the company announced that the Amazon Fresh brand will continue to operate for online shopping and delivery services. Additionally, selected locations will be converted into Whole Foods markets.

In a memo to employees, Jason Buechel, Amazon’s head of Worldwide Grocery and Whole Foods CEO, explained that the decision was driven by the need for more "deliberate choices" to win over customers. Buechel stated that the Fresh and Go stores lacked a distinctive customer experience and did not present a viable economic model for large-scale expansion. He noted that while the grocery business delivered strong results in 2025, these structural changes are intended to build further momentum.

The reorganization will result in layoffs, though the specific number of affected employees was not disclosed. According to the memo, impacted staff have been notified and will receive support, including 90 days of full pay and benefits, as well as assistance in securing other roles within the company. As part of the operational shift, the grocery logistics unit is being integrated into Amazon's broader worldwide operations division.

Looking ahead, the company plans to open more than 100 new Whole Foods locations over the next few years and expand its Whole Foods mini-market format. These efforts fall under the "One Grocery" initiative, which aims to better integrate the subsidiary with Amazon’s other grocery operations. The company also noted that its same-day delivery service for fresh groceries currently reaches over 2,300 cities.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Prioritizing economic viability The decision to close physical Fresh and Go locations is rooted in the pursuit of a sustainable business model. Jason Buechel, the head of Worldwide Grocery, stated that these specific stores did not present a viable economic model for large-scale expansion, necessitating more deliberate choices to win over customers.

• Expanding the Whole Foods footprint Resources are being redirected toward the growth of the Whole Foods Market brand, which is viewed as a key driver for future momentum. The company plans to open more than 100 new Whole Foods locations over the next few years and will convert selected closed sites into Whole Foods markets.

• Integrating logistics for efficiency The restructuring includes the "One Grocery" initiative, designed to better integrate the subsidiary with the company’s broader worldwide operations. By moving the grocery logistics unit into the general operations division, the company aims to streamline processes while maintaining same-day delivery services to over 2,300 cities.

How it may affect me

As a U.S. reader:

• Shoppers will lose access to all physical Amazon Fresh and Go convenience stores, requiring them to shift to online ordering or visit alternative grocery retailers.

• Communities may see increased access to Whole Foods markets as the company converts select closed sites and plans to open over 100 new locations in coming years.

• Workers associated with the grocery division face layoffs but will receive 90 days of pay and assistance securing other positions within the company.

• Residents in over 2,300 cities can continue using Amazon Fresh same-day delivery services despite the elimination of the brand's physical storefronts.

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