Employees will arrange salad dressing displays at Amazon’s fresh grocery store on December 12, 2024 in the Commonwealth Way of Washington.
David Ryder | Getty Images
Amazon As the e-commerce giant continues to focus its grocery strategy on all food and delivery, it is closing four more fresh supermarkets in Southern California.
Amazon confirmed with CNBC that the closure will take place in the coming weeks. They will follow the closure of four other US locations over the past few months in Washington, Virginia, New York and the Los Angeles suburbs.
“Certain locations work better than others and after evaluation we decided to close these Amazon fresh locations,” Amazon spokesman Griffin Buch said in a statement. “We work closely with affected employees to help us find new roles within Amazon whenever possible.”
According to an internal message viewed by CNBC, employees were told to meet at all hand meetings on Wednesday at one fresh supermarket in Laverne, California. They learned at the meeting that the store was closed in mid-November and employees would receive a retirement package.
Three other stores that are closed are located in the cities of Mission Viejo, Lahabra and Whittier.
Last week, Amazon said it was closing 14 fresh grocery stores in the UK and intends to turn five other locations there into Whole Foods Markets.
Amazon said it regularly evaluates its store portfolio and could lead to the opening, reopening, relocation or closure of certain locations. In the US, the company has over 60 fresh stores. Last year, the company removed “just walk-out” cashierless technology from its stores. We also select the footprints of Go Cashierless convenience stores.
Amazon has been determined to become a leading grocery player for nearly 20 years. The company launched Amazon Fresh in 2007 and then launched a pilot project for fresh food delivery. It then acquired luxury chain Whole Foods in 2017 for $13.7 billion. This is the biggest purchase on record.
Amazon debuted its fresh grocery chain in 2020, turning its eye towards mass market shoppers. The development was turbulent from the beginning.
The company began a surge in fresh locations by 2022, but the expansion plan rushed to CEO Andy Jassy’s extensive cost-cutting efforts. In 2023, Amazon announced it would temporarily shut down more openings as it sought to close several fresh stores and highlight the way it sets a chain of shoppers apart.
While closing fresh stores, Amazon continues to innovate and invest in making grocery shopping easier, faster and more affordable,” Buch said. The company still maintains 500 Whole Foods locations and is opening a mini “Daily Shop” Whole Foods store in New York City.
Buch said Amazon has millions of “grocers and everyday essentials that can be used for online distribution, pick-up or shopping.”
On Wednesday, Amazon also launched a new “price-oriented” grocery brand that will be offered online and in its physical stores. And last month, Amazon expanded its fresh food to more pockets in the US
Jassy and other company executives have promoted the success of selling “everyday essentials” in the online grocery business, referring to items such as canned groceries, paper towels, dish soaps, and snacks. Jassy told investors at the company’s annual shareholders meeting in May that it remains “bulwark” with groceries and calling it an “important business” for Amazon.
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