Amazon pulls plug on Amazon Fresh, Go stores; doubles down on Whole Foods, delivery
Source: MyNorthwest
Amazon is shuttering all of its Amazon Go and Amazon Fresh locations, the company announced Tuesday.
There are 72 stores 57 Amazon Fresh and 15 remaining Amazon Go nationwide.
Amazon described the move as a strategic shift, not a retreat from grocery sales and deliveries. The tech giant stated it is concentrating its efforts on its Whole Foods Market locations and grocery delivery from its website. Amazon purchased Whole Foods for $13.7 billion in 2017.
Over two decades ago, we started adding groceries and everyday household essentials to Amazon.com, the company stated in a press release. Today, Amazon is one of the top three grocers in the U.S., with over $150 billion in gross sales and more than 150 million customers shopping groceries each year.
Read more: https://mynorthwest.com/local/amazon-fresh-go-whole-foods-delivery/4194088
Whole Paycheck Foods
bucolic_frolic
(54,320 posts)Polybius
(21,594 posts)Because Amazon isn't going anywhere.
FakeNoose
(40,476 posts)... and I can understand that a certain portion of their customers rely on the same-day and next-day delivery. Amazon has carefully built up this clientele in cities and wealthier suburbs. The few times that I've needed something from Whole Foods, I just drove to the store because it's maybe 5 miles away, and I'm retired - no big deal.
My regular weekly grocery shopping entails visiting local stores in Pittsburgh where I can purchase fresh, high-quality groceries for lower prices, while driving myself to and from the stores.
What I'm getting at is that Amazon Fresh seemed to eat away at the same client-group that was already buying from Amazon and getting Whole Foods products on same-day delivery. I couldn't see that Amazon Fresh offered any different products and it wasn't bringing new customers into the fold. Any "fresh" groceries I could purchase on Amazon Fresh (and have delivered) were readily available by driving to my local Giant Eagle or Aldi's store which is 2 or 3 miles away. Meaning: I can get the same items faster and cheaper in my own car.
Someone who doesn't drive might see this differently, but apparently Amazon has arrived at the same conclusion.
popsdenver
(1,766 posts)that Kroeger was pulling on it's on line grocery orders using AI?
Seems they used AI to decide the pricing of items for each customer based on their purchase history. And the prices on the exact same item sometimes varied by quite a bit.........
Cute, huh........wonder how many others are using the same system besides Kroeger/King Soopers.......
Avalon Sparks
(2,746 posts)And there are no laws against it.
Lena Khan was calling attention to it under Biden.
Deceptive trade practice, clearly
Katinfl
(663 posts)said she got in the habit during Covid and just continues for the convenience. She is very pleased with the service and the quality of the food. She is a strong democrat so I questioned her about supporting Bezos by doing this. She does realize the hypocrisy but loves the convenience and not having to leave the house. I do shop Amazon because I do not like driving from store to store and not finding what I want. Not for everything, but at times Amazon works for me. But I draw the line at food. I refuse to give them any business when I can go to any grocery store close by and get what I need. Groceries are groceries. Anyway, my friend realizes this and may feel a little guilt, but continues to give them her business. To each his own. Sorry for the rant.
FakeNoose
(40,476 posts)I don't know if he orders from Amazon or wherever, but he started during the Covid lockdown and kept it up ever since. This neighbor does have a car, but he works odd hours so I guess he isn't into shopping for himself. (?)
I'm not questioning the marketing model: Amazon did discover an untapped need and they found a way to fill that need. Some people are willing to pay higher prices when it's reliably high quality and it's delivered on time.
ananda
(34,557 posts)There are certain things I need that I can
only get there, and the prices aren't that bad.
I'm not a troll, just a person who absolutely
needs what they have to offer.
wolfie001
(7,281 posts)Tiger woman part deux
SouthBayDem
(33,167 posts)The email, which has been seen by the BBC, was sent late on Tuesday and refers to a swathe of employees in the US, Canada and Costa Rica having been laid off as part of an effort to "strengthen the company."
The message was apparently shared by mistake, as it was quickly cancelled.
Early on Wednesday, Amazon announced job reductions as part of a plan to "remove bureaucracy" at the firm.
https://www.bbc.com/news/articles/cx2ywzxlxnlo