Amazon is rethinking its grocery business, and as part of that, it will shut down all of its remaining Amazon Go and Amazon Fresh physical stores. The company will convert some locations into Whole Foods Market stores.
“While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” the company wrote in a blog post. Amazon added that it would help workers at Go and Fresh stores to find positions elsewhere within the company.
For now, Amazon is focusing its grocery efforts on Fresh deliveries, Amazon Now (a 30-minutes-or-less delivery option it recently introduced to compete with DoorDash and Instacart) and Whole Foods. It plans to open more than 100 new Whole Foods Market stores over the next few years.
Amazon also says it will introduce new types of physical locations in the coming years. One concept it’s considering is a “supercenter” that would offer a broad selection of goods from Amazon, including household items, groceries and “general merchandise.” I dunno, that just sounds like a supermarket to me.
Meanwhile, the checkout-less Just Walk Out tech that the company implemented in Go and Fresh stores is still in use at third-party locations, including hospital cafeterias and sports arenas. Amazon has also deployed it in break rooms in dozens of its warehouses to help “employees maximize break time by grabbing meals without checkout delays.” It’s definitely not to keep closer tabs on workers, I’m sure.