On December 12, 2024, an employee arranges a salad -dressing display in a Amazon Fresh Grocery Store on December 12, 2024.
David Ryder | Getty pictures
Amazon Closes four other fresh supermarkets in South California, since the e-commerce giant continues to focus on Whole Foods and Deference.
The closures will take place in the coming weeks, Amazon confirmed to CNBC. They follow the shottering of four other US locations in Washington, Virginia, New York and a suburb of Los Angeles in recent months.
“Certain locations work better than in others, and according to an assessment, we decided to close this Amazon Fresh locations,” said Amazon spokesman Griffin Buch in a statement. “We work closely with the employees concerned to help them find new roles in Amazon if possible.”
In a new supermarket in La Verne, California, the employees were asked to gather for an all-hand meeting on Wednesday, according to an internal message that was viewed by CNBC. They learned at the meeting that the shop would close in mid -November and that the employees would receive a severance payment package, according to a person who was familiar with the matter who did not want to be mentioned because the details were confidential.
The other three shops that close are in cities of Mission Viejo, La Habra and Whittier.
Last week, Amazon said it intended to close 14 fresh grocery stores in Great Britain and to convert its five other locations there into Whole Foods markets.
Amazon said that it regularly evaluates its business portfolio, which can lead to opening, reopening, moving or closing certain locations. In the United States, the company has more than 60 remaining fresh business. Last year the company removed its cashier technology “Just Walk Out” from the shops. It also triggered its footprint from Go cashier -Convenience store.
Amazon has been a great scientist for almost two decades. The company started Amazon Fresh in 2007, then a pilot project for the delivery of Fresh Food, before he acquired the upscale chain Whole Foods for $ 13.7 billion in 2017.
Amazon debut his fresh food chain in 2020 with a view of mass market buyers. The rollout has been turbulent since its early days.
The company opened a flood of new locations by 2022, but the expansion plans met with the widespread cost reduction efforts of CEO Andy Jassy, as the company expects the effects of rising interest rates and increasing inflation. In 2023, Amazon announced that it announced some fresh business and temporarily stops further openings because it rated how the chain can be emphasized for buyers.
While it closes fresh business, Amazon continues to “innovate and become more faster, faster and more affordable in the purchases of food,” said Buch. The company continues to maintain 500 Whole Foods locations and has opened Mini “Daily Shop” Whole Foods shops in New York City.
Buch said that Amazon serves 150 million US customers with millions of “food and everyday basis for online delivery, collection or purchases in the shop”.
On Wednesday, Amazon also started a new “price -conscious” food brand that is offered online and in physical shops. And last month Amazon expanded the delivery of fresh food in more bags in the USA on the same day
Jassy and other managers of the company have advertised the success of “everyday essentials” in his online food business, which refers to articles such as canned goods, paper towels, formwork soap and snacks. Jassy informed investors at the company’s annual shareholders’ meeting in May that he remains “bullish” for food and described it as “important business” for Amazon.
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