In one of the most significant shifts in its grocery strategy, Amazon has announced the closure of all its Amazon Fresh and Amazon Go physical stores, choosing instead to double down on online grocery delivery and expansion of Whole Foods Market — a move that reshapes how the retail and grocery giant connects with customers in 2026.
A Strategic Shift In Grocery Retail
On January 27, 2026, Amazon revealed a major redirection of its grocery business: it will shutter all of its Amazon Fresh supermarkets and Amazon Go convenience stores in the U.S. in the coming weeks. Most of these locations are set to close by February 1, with some California stores remaining open slightly longer due to state labor notification rules. Several of these sites will be converted into Whole Foods Market stores as part of the company’s refreshed retail vision.
The closures affect 57 Amazon Fresh stores and 15 Amazon Go locations nationwide — both of which were part of Amazon’s long-running experiment with physical grocery retail.
In a blog post shared with the announcement, Amazon acknowledged that although it had seen “encouraging signals” from its Amazon-branded grocery stores, it had not yet created “a truly distinctive customer experience with the right economic model needed for large-scale expansion.” Converting select Fresh and Go stores to Whole Foods locations is intended to build on the strength of the well-known premium grocery brand.
What’s Staying — And What’s Growing
Despite closing the physical Fresh and Go stores, Amazon will continue to operate the Amazon Fresh brand online, offering grocery delivery where available. The company also plans to expand its same-day delivery service to more U.S. cities in 2026, responding to growing customer demand for fast, convenient fresh grocery delivery. This service allows shoppers to receive perishable foods — including produce, meat, dairy and more — often within hours of ordering.
In addition to reinforcing delivery, Amazon announced plans to open more than 100 new Whole Foods Market stores over the next few years, further establishing Whole Foods as the core of its physical grocery presence.
A variety of grocery formats will play a role in this expansion, including the Whole Foods Market Daily Shop, a smaller convenience-oriented store offering grab-and-go meals, coffee, and everyday essentials — with at least five new locations expected in 2026.
Why This Matters
Amazon’s move signals a clear pivot away from owning its own Fresh branded physical grocery stores — an experiment that launched with ambition in the early 2020s but never achieved the wide differentiation from competitors the company hoped for. By contrast, Whole Foods, acquired in 2017, has seen steady growth in sales and store count, positioning it as a stronger retail engine for Amazon’s grocery strategy.
Industry analysts see this as a recognition of where Amazon’s strengths lie: fast delivery, extensive online reach, and a premium physical grocery brand that resonates with shoppers. The expansion of same-day deliveries — now reaching more than 5,000 U.S. cities and towns — and the integration of fresh groceries into that network reflect how consumer demand has shifted toward convenience and speed.
The closures also reflect broader trends in retail, where balancing digital convenience with in-store experience has proven challenging even for companies as large as Amazon.
Supporting Employees And Innovation
As part of the transition, Amazon has said it is working to help affected employees find new roles within the company, including in its fulfillment and operations networks. Some outlets also report packages of pay and benefits for workers during the transition, highlighting efforts to reduce disruption for staff.
Meanwhile, technologies developed for the Amazon Go and Fresh formats — such as cashier-less checkout and inventory systems — are expected to live on in other parts of Amazon’s retail ecosystem and through licensing to third parties, even as the company shifts focus.
What’s Next
Amazon’s grocery evolution now rests on three pillars:
- An expanded online delivery footprint, with faster same-day and near-instant deliveries of fresh groceries.
- A significantly larger Whole Foods Market presence, including more than 100 future locations and new store formats.
- Continued innovation in retail technology and hybrid shopping experiences to keep pace with competitors such as Walmart, Kroger, Instacart, and traditional food retailers.
For customers who grew accustomed to Amazon Fresh and Amazon Go stores, the experience will now shift toward digital convenience and an enhanced Whole Foods retail experience — a strategy that emphasizes where Amazon believes the future of grocery shopping is headed.
