Amazon has declared the closure of 72 self - operated branded supermarkets and convenience stores. This includes 14 Amazon Go cashier - less convenience stores and 58 Amazon Fresh supermarkets. A portion of these stores will be transformed into Whole Foods Market outlets.

This strategic move is likely to have an impact on some employees. However, Amazon has pledged to support them through job - transfer assistance. Previously, Amazon has made several attempts to scale back its owned - brand physical retail operations. The reasons for this are manifold. For instance, the technology employed failed to revolutionize the cost structure of fresh food retailing. Consumers also perceived limited value in the cashier - less checkout experience. Moreover, Amazon underestimated the intricacies involved in offline fresh food retailing, which ultimately led to stores falling short of profit expectations.

Looking ahead, Amazon intends to focus its resources on areas where it excels, such as logistics and distribution, as well as data analysis. It will maintain its physical retail footprint through Whole Foods Market and has plans to open hypermarkets. Its core technology, Just Walk Out, has discovered new avenues for commercialization. It is now being implemented in multiple third - party venues and internal distribution centers. The data and experience gathered from store operations will be fed back into the online delivery system and Whole Foods Market stores.

The closure of these stores signifies a well - thought - out adjustment. It highlights that technology is not a one - size - fits - all solution in the retail industry and that it is crucial for companies to have a clear understanding of their own strengths.