Amazon is shifting its emphasis in the grocery business to its delivery operations and Whole Foods Market, which will add more than 100 new stores over the next several years, as the company closes its Amazon Go and Amazon Fresh brick-and-mortar stores.
In addition to adding Whole Foods stores, Amazon pointed out in a blog post that it is developing a new format under the banner. Whole Foods Market Daily Shop, a smaller store concept, will redefine the neighborhood grocery shopping experience with a curated selection of grab-and-go meals, coffee and everyday essentials, Amazon asserted. Based on the strong performance of the format, now operating in five locations, the company plans to roll out five additional Whole Foods Market Daily Shop locations by the end of 2026, Amazon added.
The company noted that it would look to convert Amazon Go and Amazon Fresh physical stores into Whole Foods Market locations. Customers can still shop Amazon Fresh online in areas where delivery is available.
Amazon indicated that it would continue to develop its brick-and-mortar operations, with a new superstore format planned for the Chicago market. The company is still testing Amazon Grocery, which launched alongside Whole Foods Market in Chicago and continues to operate. The store-within-a-store format at the Plymouth Meeting, PA, Whole Foods Market will continue to offer Amazon groceries and household essentials.
In its direct-to-consumer operations, Amazon is testing an ultra-fast delivery service covering thousands of essential items, including fresh food, that can reach customers’ homes in under 30 minutes. The Amazon Now service focuses on products typically found in a traditional convenience store, and the trial of the concept is expanding to multiple cities in the United States, Amazon said.
