Amazon admits what went wrong as it axes all its Fresh and Go stores
Ella Scott
Featured Image Credit: OntheRunPhoto/Getty Images
Amazon has officially called time on its Amazon Fresh and Amazon Go stores across the United States, reasoning that the sites failed to create a ‘truly distinctive customer experience’.
It was a mere matter of months ago that Amazon revealed its 19 brick-and-mortar UK Fresh stores would be shutting up shop.
Instead of pouring efforts into the operation, the business confirmed it would be turning its attention to expanding its Whole Foods Market brand, as well as launching another ‘physical retail concept’.
The former is a high-end grocer which Amazon purchased from co-founder, John Mackey, for $13.7 billion in June 2017.
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At least five of the shuttered British Fresh locations are slated to become Whole Foods Market stores, bringing the total count to 12 by the end of 2026, according to The Guild of Fine Food.
On Tuesday 27 January, Amazon continued its Fresh purge by putting all 58 US-based brick-and-mortar stores on the chopping block.
All 16 Amazon Go convenience stores are also set to become null and void.
The retail giant reasoned that while the physical outlets showed ‘encouraging signals’, they hadn’t exactly created a ‘truly distinctive customer experience with the right economic model needed for large-scale expansion’.
It's understood the company 'evaluated' the businesses and discussed how customers could be better served before confirming the closures.
“Customers can continue to shop Amazon Fresh online in available areas for fast and convenient delivery,” a statement read via Amazon News.
“We're grateful to our team members for their many contributions over the years and are working whenever possible to help them find roles elsewhere in Amazon, including across our vast operations network, as we make this transition.”
Arrangements are currently being made to open up more than 100 Whole Foods Market stores over the next few years.
This included the expansion of its new spinoff called Whole Foods Market Daily Shop.
The Seattle-based business did not specify a timeline on when these sites will open.
Following the closure of Fresh and Go establishments, the business will also turn its focus to developing a new mass physical store format.
It’s said that this concept will bring customers a ‘distinctive selection, value, and convenience’.
“Over the coming years, we plan to introduce new store concepts that we think customers will be excited about,” the statement continued.
This may look like a ‘new supercenter physical retail concept’ which will be specifically designed for Amazon shoppers to browse a broad selection of fresh groceries, household essentials, and general merchandise.
“Through it all, our goal remains: to make grocery shopping easier, faster, and more affordable for customers,” the site added.