Amazon has announced a significant shift in its brick-and-mortar real estate footprint in the United States, planning closures and conversions of its Amazon Go and Amazon Fresh grocery stores in favour of expanding its Whole Foods Market network and bolstering delivery infrastructure. The move reflects a recalibration of how the company utilises physical space amid evolving consumer preferences.
The company said it will shutter a number of its Amazon Go convenience stores and Amazon Fresh supermarkets, converting selected locations into Whole Foods Market stores, part of a broader plan to open more than 100 new Whole Foods over the coming years. This reallocation of retail property underscores a strategic emphasis on a proven store format with stronger brand traction and operational viability. Amazon Fresh’s cashier-less physical grocery outlets, once seen as innovations in automated retail, will instead be integrated into the broader Whole Foods estate or cease operations, with the Fresh banner continuing online where available.
The closures and conversions also align with Amazon’s broader same-day delivery expansion, intended to increase the utility of its logistics and distribution network in urban and suburban areas. By consolidating under the Whole Foods brand, Amazon appears to be streamlining its property portfolio to balance delivery fulfilment with a curated set of physical locations that can serve dual roles as retail points and last-mile distribution hubs. Analysts noted the shift highlights a growing focus on optimising real estate assets rather than maintaining a proliferation of varied store formats that have not achieved scalable performance.
Real estate implications extend to local markets where closures might alter foot traffic patterns and neighbourhood retail dynamics, particularly where Amazon’s smaller formats once served as convenience anchors. The decision leaves open questions about how Amazon will repurpose or divest surplus real estate and whether hybrid models combining retail, fulfilment and logistics functions will emerge as a template for future site utilisation.
