Amazon has announced the closure of all its Amazon Go and Amazon Fresh stores to concentrate on grocery delivery, expand Whole Foods Market, and introduce a new “super-large” store concept. The closures, effective February 1 (with California stores remaining open longer), involve 57 Amazon Fresh and 15 Amazon Go locations. Despite some successes, the company noted challenges in creating a unique customer experience and a scalable economic model for its physical grocery stores.
Since acquiring Whole Foods Market in 2017, Amazon’s sales have grown by over 40%, with plans to open more than 100 additional Whole Foods locations in the coming years. As demand for online grocery delivery rises, Amazon currently services 5,000 U.S. locations with same-day delivery and aims to expand this service further.
Additionally, Amazon is developing a new supercenter that will offer a wide range of fresh groceries and household items and testing a new in-store format, “Amazon Grocery,” in partnership with Whole Foods. Amazon’s Go stores have also provided valuable insights and technological advancements, particularly with its “Just Walk Out” technology, which is now implemented in numerous third-party stores and its own fulfillment centers.
Source link
