In a recent press release, Amazon has announced the closure of Amazon Go and Amazon Fresh physical stores. They are instead expanding Same-Day Delivery for perishable groceries. Amazon will convert select stores to Whole Foods Market locations. They will also implement smaller versions of these stores called Whole Foods Market Daily Shops which will be a smaller, convenient and accessible stores with a curated selection of foods. According to AP News, all locations are ceasing operations on Feb. 1, excluding the state of California.
Public Relations Perspective
Though this could cause backlash for the company through dedicated shoppers for Amazon Go and Amazon Fresh, it will open more Whole Foods stores. Whole Foods Markets are currently rising in popularity, with a 40% sales increase since Amazon acquired them in 2017, and opening locations will bring in new customers. Amazon plans for there to be over 100 new Whole Foods Market locations in the next few years. Amazon is recognizing the intense competition and market there is for supermarkets and they are adjusting.
There is risk in this decision. Amazon is closing a nationwide branch of physical stores. However, Amazon is expanding their Same-Day Delivery services to still provide deliverable fresh foods to customers. While closing the Amazon Go and Amazon Fresh stores, they are replacing them with something both familiar and desirable for customers. The addition of Whole Foods Market Daily Shops means more people will experience the brand, it makes Whole Foods more accessible.
This is a big decision for the company. When first announced the Amazon Go stores were seen as revolutionary. With Amazon Go, customers could walk in and out without paying in store. The payment would be subtracted later. This will always be a part of Amazon’s history and remembered as one of the first businesses to implement this idea. With the removal of all Amazon Go stores, there is a chance the business could be viewed as a failed venture.
