The high-flying e-commerce company has been in cost-cutting mode lately. Amazon reported a 6% rise in physical store sales during Q4, according to its earnings report. In early February, CEO Andy Jassy said during the company's recent earnings call that Amazon was halting its Fresh grocery store rollout as it figures out a way to better differentiate and improve its economics.Īt the time, the company said it would close some Fresh and Go locations, but didn’t indicate how many. The closures continue a recent flurry of setbacks for Amazon’s physical retail segment.
“We remain committed to the Amazon Go format, operate more than 20 Amazon Go stores across the U.S., and will continue to learn which locations and features resonate most with customers as we keep evolving our Amazon Go stores,” the spokesperson said. When asked why Amazon has decided to shutter the eight stores in Seattle, New York City and San Francisco, the spokesperson said that like with any retailer, Amazon periodically assesses its portfolio of stores and makes optimization decisions along the way.
With these closures, the company will have 23 Go stores, the spokesperson said.
As of last month, Amazon operated 31 Go stores in total. The retailer also opened a number of locations last year in Southern California. Amazon closing several of its Go stores comes just weeks after it opened a location in Puyallup, Washington that follows its larger suburban-focused format.
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