Amazon has announced that it will shut down its Amazon Go and Amazon Fresh physical stores, marking a clear shift in how the company wants to run its grocery business. The decision comes after what Amazon described as a detailed review of its grocery operations and long-term plans.
In a statement, Amazon said it made the move after carefully evaluating how it can best serve customers. “After a careful evaluation of the business and how we can best serve customers, we’ve made the difficult decision to close our Amazon Go and Amazon Fresh physical stores,” the company said.
Amazon Go and Amazon Fresh stores were launched as bold experiments in physical retail. They were built around Amazon’s Just Walk Out technology, which allows customers to pick up items and leave without stopping at a checkout counter. While the idea attracted attention, the stores struggled to build a clear identity for shoppers and failed to deliver a business model that could scale profitably.
At the same time, Amazon’s other grocery bets have been doing far better. Whole Foods Market, which Amazon acquired in 2017, has seen strong growth. According to the company, sales at Whole Foods have risen by more than 40 percent in recent years. This performance appears to have played a big role in Amazon’s decision to double down on the brand instead of continuing with Amazon Go and Fresh stores.
Amazon’s online grocery business has also seen rapid growth. The company said that sales of fresh and perishable groceries through its Same-Day Delivery service have increased sharply since January 2025. In fact, perishable grocery sales are now one of the most ordered categories on Amazon’s platform, showing that customers are increasingly comfortable ordering fresh food online.
Looking ahead, Amazon plans to focus its efforts on expanding Whole Foods Market. The company said it intends to open more than 100 new Whole Foods stores over the next few years. It is also working on a smaller store format called Whole Foods Market Daily Shop, which will focus on quick meals and everyday essentials for people on the go.
In addition, Amazon is expanding its online grocery delivery network, which already serves more than 5,000 cities and towns across the United States. Same-Day Delivery is expected to reach even more areas in 2026.
While Amazon Go stores will close, the technology behind them is not going away. Just Walk Out is already being used at hundreds of third-party locations such as airports and stadiums, and Amazon plans to use it inside its own facilities as well.
Overall, the move shows Amazon stepping back from experimental grocery stores and putting its weight behind businesses that customers are already using at scale.
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