Amazon closes four Fresh supermarkets in California amid grocery shake-up

Amazon will shutter four Amazon Fresh supermarkets in Southern California in the coming weeks, continuing a broader review of its brick-and-mortar grocery footprint.

Four locations set to wind down operations

The company confirmed plans to close stores in La Verne, Mission Viejo, La Habra and Whittier. Employees at the La Verne site were informed during an all-hands meeting that the shop will close in mid-November and that eligible workers will receive severance packages. A spokesperson said Amazon is assisting affected staff in securing other roles inside the organization whenever possible.

The latest move follows the closure of four other Amazon Fresh outlets in Washington, Virginia, New York and suburban Los Angeles earlier this year. After the Southern California exits are completed, Amazon will operate more than 60 Fresh stores across the United States.

Strategy pivots toward Whole Foods and e-commerce

Amazon’s decision is part of an ongoing effort to refine its grocery strategy, which centers on Whole Foods Market and online delivery services. Last week the company announced the planned shutdown of 14 Fresh stores in the United Kingdom, with five remaining sites there slated to convert to Whole Foods formats.

Launched in 2020 to attract value-focused shoppers, the Fresh chain grew quickly before Amazon paused expansion in 2023 to reassess how the concept could differentiate itself in a competitive grocery landscape. The retailer has since removed its “Just Walk Out” cashierless technology from Fresh locations and has reduced the footprint of its Go convenience stores.

Chief Executive Andy Jassy has repeatedly described grocery as a significant long-term opportunity for Amazon, noting that the company already reaches about 150 million U.S. customers with grocery and everyday essentials through online delivery, pickup and in-store shopping.

Cost pressures and changing consumer habits

Rising interest rates and inflation have prompted Amazon to streamline operations across divisions. The trimming of physical grocery sites aligns with company-wide cost-cutting measures that began in 2022. Analysts say the grocer’s ambition to balance physical stores with e-commerce reflects wider industry challenges, including thin margins and shifting consumer expectations. A recent National Retail Federation report highlighted that traditional supermarkets are also reconsidering real-estate strategies to focus on profitable regions and digital fulfillment.

New brands and services still on the way

Despite pullbacks in some areas, Amazon continues to roll out grocery initiatives. On Wednesday, the company introduced a “price-conscious” private-label food line that will be offered online and in remaining stores. In September, same-day delivery of fresh foods expanded to additional U.S. cities, underscoring Amazon’s emphasis on speed and convenience.

Amazon also maintains roughly 500 Whole Foods locations nationwide and has opened several smaller “daily shop” Whole Foods formats in New York City. These stores are designed to cater to top-up grocery trips and prepared-meal purchases, complementing the chain’s traditional full-service supermarkets.

Ongoing evaluation of the store network

An Amazon spokesperson said the company routinely assesses its physical footprint, which can result in openings, relocations or closures based on performance and customer demand. No details were provided on potential future changes to the Fresh portfolio in other regions.

For now, shoppers near the four Southern California sites will be directed to nearby Fresh or Whole Foods markets, or to Amazon’s delivery and pickup options. The closures are scheduled to conclude before the end of the year, subject to local requirements.

Additional updates on Amazon’s grocery operations can be found in our Finance News Update section.

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