Amazon scales back Go and Fresh networks to develop Whole Foods and delivery

Tech giant Amazon has announced the closure of all its Amazon Go and Amazon Fresh stores. The company is reviewing its physical retail strategy, focusing on expanding the Whole Foods Market network and improving ultra-fast grocery delivery services. This is stated in an AP article, writes UNN.

DetailsAccording to the official announcement, most of the 57 Amazon Fresh stores and 15 Amazon Go locations will cease operations on February 1. Some of these locations are planned to be converted into Whole Foods Market brand stores, whose sales have grown by 40% since the acquisition of the chain in 2017. The corporation is currently preparing to open more than 100 new Whole Foods locations in the coming years.

While we see encouraging signs in our physical grocery stores under the Amazon brand, we have not yet created a truly unique customer experience with the right economic model needed for large-scale expansion.

Evolution of technologies and new formatsDespite the closure of specialized stores, the contactless payment technology “Just Walk Out” developed in them will continue to evolve as a separate product. Today, this solution is already used in more than 360 third-party stores in five countries, and is also being implemented in Amazon’s internal fulfillment centers for the convenience of employees.

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At the same time, the company announced the launch of “new supercenters” – large physical stores that will combine the sale of fresh produce with a wide range of general consumer goods. The Amazon Grocery format, which is integrated directly into existing Whole Foods Market stores, is also being tested.

Focus on online deliveryAmazon continues to strengthen its position in the e-commerce segment, providing grocery delivery to 5,000 US cities. This year, the retailer plans to expand its same-day fresh produce delivery service to new areas, based on high customer demand for online purchases of essential goods. 

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