Amazon's Grocery Purge Continues with Five More Fresh Store Closures

Amazon is closing five more of its Fresh grocery stores in Southern California and New York, continuing its strategic retreat from the struggling physical brand to double down on its Whole Foods and online delivery operations, as reported by CNBC.

• The standard rationale: In a boilerplate statement, Amazon called the decision part of its "regular portfolio evaluation," with a spokesperson noting that "certain locations will work better than others." The company says it will help affected employees find other positions within the company.

• A familiar playbook: The U.S. closures mirror Amazon’s recent retreat from the Fresh brand in the U.K., where the company closed 14 locations while converting five others into Whole Foods markets. A similar conversion is already underway in Thousand Oaks, California, solidifying the company's focus on its more successful grocery banner.

• Still bullish on groceries: Despite the Fresh-branded pullback, Amazon insists its grocery ambitions are unchanged. A spokesperson reiterated the company's commitment to "innovate and invest" across its entire portfolio, which includes same-day delivery and more than 600 physical stores under its Whole Foods and Amazon brands.

Amazon isn't giving up on its grocery ambitions, but it's clearly admitting the Fresh store concept isn't the winning formula. The company is trimming the fat from its experimental retail efforts to pour resources into what already works: the premium Whole Foods brand and its dominant online delivery network.

While the Fresh experiment falters, Amazon continues to expand its smaller-format Whole Foods Daily Shops in new cities. The company's focus on its premium banner also includes looking ahead, with Whole Foods recently sharing its predictions for 2026's top grocery trends.