After more than a year in beta, Amazon has opened its cashier-less grocery store to the public
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Amazon plans to close eight of its Go convenience stores, the company said Friday, a move that coincides with a rollback of its physical footprint and a broader cost-cutting effort.
The company will close two Go stores in New York, two locations in Seattle and four stores in San Francisco. Stores will close on April 1, and Amazon said it would work to help affected employees obtain other roles in the business.
“Like any brick-and-mortar retailer, we periodically evaluate our store portfolio and make optimization decisions along the way,” Amazon spokeswoman Jessica Martin said in a statement. “In this case, we have decided to close a small number of Amazon Go stores in Seattle, New York and San Francisco. We remain committed to the Amazon Go format, operate more than 20 Amazon Go stores in the United States and will continue to learn what locations and features resonate the most with customers as we continue to evolve our Amazon Go stores.”
The news was previously reported by GeekWire.
Amazon CEO Andy Jassy has taken steps to cut spending at his grocery unit and elsewhere as he grapples with slowing sales and deteriorating economic prospects. In January, the company said it would lay off up to 18,000 employees, and thereforeme cuts were felt in the Amazon grocery store. He poured warehouse And physical retail space in recent months after a period of rapid expansion fueled by increased e-commerce spending during the pandemic.
Amazon executives before confirmed the company would close some Fresh supermarkets and Go stores after its fourth quarter results. Amazon is also temporarily suspending expansion of grocery chain Fresh until it can find a format that resonates with customers and “where we like the economy,” Jassy said on the earnings call. .
Amazon has been determined to break into the grocery segment since launching its fresh grocery delivery service in 2007. It caused a stir when it acquired upscale grocer Whole Foods Market in 2017 for $13.7 billion, the largest acquisition ever by Amazon.
The first Amazon Go store opened to the public in 2018 at the company’s headquarters in Seattle. Amazon equips stores with cameras and sensors that allow customers to purchase products without queuing at checkout. Last January, the company opened its first suburban Amazon Go location in Mill Creek, Wash., after focusing launches around urban areas in an effort to attract commuters during their lunch breaks.
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