Amazon announced Tuesday it will be closing all of its brick-and-mortar Amazon Fresh and Amazon Go stores, including those in Naperville on Ogden Avenue and Route 59.
Way to “prioritize” investments, company says
In a blog post, the company described the closures as a way to “prioritize” its investments.
“While we’ve seen encouraging signals in our Amazon-branded physical grocery stores, we haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” they said in a statement.
Amazon Fresh first opened in Naperville at 3116 Illinois Rte 59, Suite 104, in December 2020. The second location launched less than two years later at 1351 E Ogden Ave.
There are currently 57 total Amazon Fresh and 15 Amazon Go stores, all of which are expected to cease operations on Feb. 1, except stores in California, which will stay open a bit longer. Customers will still be able to shop Amazon Fresh online.
Company to expand Whole Foods’ presence
Some stores will eventually be converted into Whole Foods Market Stores, a company Amazon acquired in 2017. The company said the move is an effort to better invest in physical stores that are “resonating with customers.” It highlighted that since its acquisition, Whole Foods has seen more than 40% sales growth and has expanded to over 550 locations.
“Customers are increasingly choosing Whole Foods Market for both everyday shopping and special occasions, as demonstrated by record-breaking customer traffic and year-over-year comparable store growth that is outpacing the broader industry,” it said.
Amazon also said it plans to open another 100 Whole Foods stores in the next few years, and grow the Whole Foods Market Daily Shop, a new format of smaller stores that launched in 2024, currently with five locations.
While Whole Foods is one of Amazon’s priorities, another is “accelerating fast grocery delivery services,” the company said. It recently launched Amazon Now, a grocery delivery option that delivers items in about 30 minutes or less. The service is being tested in Seattle and Philadelphia.
New Amazon store in development in Orland Park
Nevertheless, the company says it still plans to improve on Amazon-branded store experiences, currently testing new physical stores like Amazon Grocery in Chicago.
A new 230,000-square-foot Amazon store is also in development in Orland Park, expected to open in 2027. The store, which will be the company’s largest retail location, will sell groceries, household materials, and merchandise, among other items.
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