Amazon shuts Go and Fresh stores

The decision matters because Amazon has spent years trying to crack brick-and-mortar grocery with cashierless Go stores and Fresh supermarkets, only to conclude that the formats are not the best use of capital. For investors, it removes another drag on a business that has long been judged more on scale and logistics than on store count, and it suggests Amazon is concentrating investment on higher-return grocery channels.

Amazon said customers can still buy groceries online in available areas with fast delivery, and that it now delivers groceries to 5,000 cities and towns in the US, including thousands with same-day service. The company is also testing Amazon Grocery, a new store format launched with Whole Foods in Chicago, and plans a new “supermarket” concept built around fresh food, household staples and general merchandise.

The broader read-through is that Amazon is simplifying a grocery strategy that was never a core profit engine, while preserving the pieces that fit its logistics network. The shift should help clarify how much capital the company is willing to commit to physical retail as it battles rivals in grocery, convenience and same-day fulfillment.