Amazon Shutters Fresh, Go Stores As Its Grocery Business Sinks

Amazon said Thursday that it will close certain Amazon Fresh and Amazon Go stores. It also said it would cut jobs across this area of the business, Mary Hanbury reported for Business Insider.

Photo Insert: Amazon confirmed earlier this week that these cuts would impact jobs across its grocery arm, including employees that work on the tech and design of these stores.

Critics say the focus on tech rather than retail experience in stores is putting off shoppers. Amazon said Thursday that it plans to close a number of Amazon Fresh grocery and Amazon Go convenience stores and pause new openings.

The announcement, which was made during its fourth-quarter earnings call, came just weeks after the e-commerce giant said it will cut 18,000 jobs in certain areas of the business.

Amazon confirmed earlier this week that these cuts would impact jobs across its grocery arm, including employees that work on the tech and design of these stores. The two announcements cast doubt over the success and future of Amazon's grocery business, which was primed to be a major industry disruptor.

An Amazon spokesperson did not confirm which locations would be closing. Amazon has tried to make inroads into food and grocery for many years. Initially via its online delivery service Amazon Fresh and then through its acquisition of Whole Foods,

Recently, it also launched its Amazon Fresh supermarkets and Amazon Go cashier-less stores.

But experts have dubbed this arm of the business as "an expensive hobby" that has yet to come good. In a call with analysts on Thursday, Amazon CEO Andy Jassy said the company was experimenting with these stores to find a format that is differentiated from competitors and resonates with shoppers.

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