Is Amazon Fresh being discontinued?

Amazon has yet to find a scalable brick-and-mortar grocery format, almost six years after acquiring Whole Foods Market, according to a letter from Andy Jassy, President and CEO of Amazon.
Jassy stated that the company is still searching for a mass grocery format that it believes is worth expanding broadly, and that Amazon Fresh is the brand that has been experimented with for a few years.
The company took a $720 million impairment charge in the fourth quarter of fiscal 2022 due to its physical Amazon Fresh and Amazon Go store formats.
Achieving the company's targeted 4% sales growth over the next five years would add more than $130 billion of sales on top of its roughly $600 billion base today.
However, delivering perishables to consumers at a greater scale than Whole Foods remains a challenge for the company.
The company has decided not to expand the physical Fresh doors until it identifies the right mass grocery format that it believes will be successful.
In the fiscal 2022 fourth quarter, the company reported net sales of $141.3 billion, up 36% year over year, and net income of $3.3 billion, compared to $2.9 billion in the same period a year earlier.


In summary, Amazon continues to experiment with its Amazon Fresh format as it seeks a scalable brick-and-mortar grocery format to complement its e-commerce and cloud businesses.