Amazon is set to revamp its offline retail strategy. Amazon will close Amazon Go and Amazon Fresh stores and shift toward strengthening Whole Foods and same-day delivery capabilities, TechCrunch reported on Jan. 27 local time.
Amazon Go was a space for testing Amazon's cashierless checkout system, Just Walk Out. Amazon plans to focus on providing the technology to third parties such as sports stadiums.
The company said, "Amazon-branded offline stores showed positive signs, but we were unable to build an economic model for large-scale expansion."
The move aligns with a broader pullback in Amazon's offline retail footprint. When it closed some stores in 2024, Amazon said it could not make rent costs and economics work. But Amazon is not winding down its offline business. Amazon plans to open more than 100 additional Whole Foods stores, reflecting strong consumer preference for the Whole Foods brand. It will also expand the convenience store-style Whole Foods Market Daily Shop.
Chi-gyu Hwang
delight@d-today.co.kr