Amazon Fresh retreat accelerates as Amazon pivots to delivery and Whole Foods growth

Amazon Fresh is entering a decisive new phase in early 2026: the company is winding down its branded Amazon Fresh physical grocery stores and the Amazon Go convenience format while shifting investment toward same-day grocery delivery and an expanded Whole Foods footprint. The pivot is already rippling through local retail markets, where several nearly ready-to-open sites are being mothballed or repurposed, and in the U.K., where former Amazon Fresh storefronts are being absorbed by established grocers.

The move marks a reset after years of experimentation with checkout-free tech and smaller-format grocery stores designed to compete on price and convenience. Instead of trying to scale a standalone “Amazon Fresh store” network, Amazon is leaning on delivery logistics and its higher-volume, more mature Whole Foods chain.

What’s happening with Amazon Fresh stores

Amazon said late January 2026 that it plans to close its Amazon Fresh physical stores and Amazon Go locations as it prioritizes “growth areas” in grocery. The Amazon Fresh brand will continue online, where it can be bundled into fast-delivery subscriptions and broader household shopping.

The decision affects locations that were already operating as well as sites that were in various stages of buildout. In several markets, landlords and brokers are now re-marketing vacant grocery boxes that had been branded for Amazon Fresh, sometimes after substantial renovation work was completed.

Metro Detroit plans are canceled

One of the clearest near-term examples is metro Detroit, where multiple Amazon Fresh sites that had been planned—some reportedly already fully built out and permitted—have been scrapped. Several properties in suburbs such as Troy and Roseville are now being pitched to replacement tenants while Amazon continues to hold leases and pay rent on unused space.

For commercial real estate, this is a high-stakes whiplash: grocery boxes are valuable, but they’re not always easy to backfill quickly. Prospective tenants typically need long lead times for refrigeration, loading upgrades, and interior buildouts—meaning some sites could sit dark for months.

The U.K. shows what comes next

In the U.K., where Amazon previously tested small-format “just walk out” convenience locations under the Fresh name, the unwind is already turning into a reshuffling of prime retail addresses. A major British grocer has announced it will take over five former Amazon Fresh sites in London and convert them into convenience stores slated to reopen before summer 2026.

That development hints at what may happen elsewhere: established grocers—already set up for staffing, supply chain, and high-frequency shoppers—can often move into these footprints faster than new entrants. The end result is less “new grocery disruption” and more consolidation around familiar operators.

The strategy shift: delivery first, Whole Foods as the anchor

Amazon’s core bet is that grocery growth can come from two levers it believes scale better than a new store chain:

1. Same-day delivery expansion for groceries and household staples, using its logistics network and fulfillment footprint.

2. Whole Foods expansion, including converting select former sites where the economics and location fit a premium, full-service grocery model.

Recent guidance around the pivot also includes continued development of in-store technology—but increasingly in service of Whole Foods rather than Amazon Fresh storefronts. That includes the newest versions of smart carts designed to speed up shopping and payment.

Key numbers and what they signal

Here’s a snapshot of the footprint and the direction of travel as of early February 2026:

The numbers help explain the strategic math. A 500+ store chain can support vendor relationships, regional distribution efficiencies, and repeat customer habits in a way that a sub-100 store experiment often can’t—especially when labor, shrink, and refrigeration costs remain stubbornly high.

What shoppers should expect next

For customers, the most practical change is that “Amazon Fresh” is likely to mean delivery and pickup rather than a neighborhood storefront. In markets where Amazon Fresh stores had been open, shoppers may be nudged toward Whole Foods for in-person trips while using delivery for fill-in orders, pantry staples, and same-day needs.

In the near term, watch for three developments:

• More lease dispositions: subleased or sold sites, especially where store launches were halted late in the process.

• Conversions: select former locations may be rebranded into Whole Foods where demographics and traffic patterns fit.

• Tech rollout inside Whole Foods: smart carts and friction-reducing checkout tools may expand even as Amazon Fresh stores disappear.

The broader grocery landscape won’t stand still: traditional grocers have been investing aggressively in convenience formats, delivery partnerships, and smaller-footprint stores—exactly the space Amazon Fresh was intended to disrupt. Amazon’s reset suggests it now sees faster, more defensible growth through logistics and the Whole Foods banner than through building a new grocery chain from scratch.

Sources consulted: Reuters, Axios, Fortune, About Amazon