Amazon is closing its Fresh grocery store located in Seattle’s Capitol Hill neighborhood in order to focus on redesigned stores with an expanded selection. The closure of the store, which originally opened in February 2020 as the first Amazon Go Grocery location, is expected to occur on Sunday. Amazon plans to remove Just Walk Out technology from existing large-format Fresh stores and will not include the system in new stores, opting instead for Dash Carts that track items and costs as shoppers place them in their carts. Just Walk Out technology will still be used in Amazon Go convenience stores and will be licensed to third parties for use in other locations.
In an effort to offer a better shopping experience and to increase customer satisfaction, Amazon has redesigned a number of its full-sized Fresh stores over the past year. The company has seen positive results from these changes, including higher satisfaction scores and increased purchasing. As a result, Amazon has decided to selectively open new Amazon Fresh stores based on positive customer feedback, closing the smaller store in Seattle’s Capitol Hill neighborhood. While Amazon has not disclosed how many employees will be affected by the closure, it has stated that all employees have been offered roles at nearby Fresh stores. The store will be closed on Wednesday and Thursday, reopening for discounted sales on Friday through Sunday.
Amazon has a total of four Fresh locations in the greater Seattle area, including stores in Bellevue and Federal Way, Washington, as well as on Aurora Avenue North and Jackson Street in Seattle. The company also operates more than 40 Amazon Fresh stores across the U.S. In recent years, Amazon has closed multiple physical retail locations, including all Amazon 4-star, Books, and Pop Up stores, as well as a number of Go stores. Despite these closures, Amazon CEO Andy Jassy stated during a Q4 earnings call in February that the company is pleased with the progress of its retail grocery business, which continues to grow at a healthy rate. Jassy emphasized the importance of having a strong physical presence to meet the diverse grocery needs of customers.
Overall, Amazon’s decision to close its Fresh store in Seattle’s Capitol Hill neighborhood reflects the company’s shift towards redesigned stores with updated offerings and improved shopping experiences. By focusing on select new Amazon Fresh locations based on customer feedback, Amazon aims to enhance customer satisfaction and drive increased purchasing. Despite the closure of multiple physical retail locations in recent years, Amazon remains committed to its retail grocery business, which continues to show healthy growth. As the company continues to evolve its grocery offerings, it will prioritize a mass physical presence to serve the diverse needs of customers.
