Why is Amazon closing physical stores?

Why is Amazon closing physical stores?

Amazon's decision to close eight of its Go convenience stores comes as part of the company's efforts to cut costs and optimize its physical retail footprint. The stores that are closing include two locations in New York City, two in Seattle, and four in San Francisco. The stores are set to close on April 1, and Amazon has said that it will work to help affected employees find other roles within the company.

Why is Amazon closing physical stores?

Amazon spokesperson Jessica Martin stated that, "Like any physical retailer, we periodically assess our portfolio of stores and make optimization decisions along the way." Martin added that the company remains committed to the Amazon Go format, operates more than 20 Amazon Go stores across the US, and will continue to learn which locations and features resonate most with customers as they keep evolving their Amazon Go stores.

The decision to close the stores comes as Amazon CEO Andy Jassy takes steps to cut expenses in the grocery unit and other areas of the company in response to slowing sales and an uncertain economic outlook. Why is Amazon closing physical stores?    Amazon has shed warehouse and brick-and-mortar retail space in recent months after a period of rapid expansion fueled by a surge in e-commerce spending during the pandemic.

Amazon has been working to crack the groc

Why is Amazon closing physical stores?

ery segment since launching its Fresh grocery delivery service in 2007. In 2017, Amazon made a historic splash when it acquired upscale grocer Whole Foods Market for \$13.7 billion, the company's largest acquisition to date. The first Amazon Go store opened to the public in 2018 at the company's Seattle headquarters, and the company has been experimenting with various store formats in a bid to find the right formula to scale its physical grocery business.