Amazon is set to close its Amazon Go convenience store in Woodland Hills, California on February 26, as confirmed by a company spokesperson to C-Store Dive. The decision to shut down this store comes after a portfolio assessment, with the spokesperson declining to provide specific reasons for the closure. This particular store is part of Amazon Go’s larger suburban format, designed to cater to shoppers outside of the typical downtown areas targeted by standard Amazon Go stores.
Over the past three years, Amazon has closed approximately half of its Amazon Go stores as it has faced challenges in establishing and maintaining a presence in the brick-and-mortar retail space. At its peak in early 2023, Amazon operated around 30 Go convenience stores across states like Washington, California, New York, and Illinois. However, in a cost-cutting move, the company began closing down these stores, with a notable instance of shutting down eight stores at once, including locations in Seattle, New York City, and San Francisco.
Currently, Amazon operates 16 Go stores, with the spokesperson emphasizing that despite the closures, the company remains committed to investing in its Go convenience stores as physical retail continues to be a key component of its strategy. The Woodland Hills store, which will cease operations after three years in business, offers a wider range of grab-and-go food and drink options compared to standard Amazon Go stores. It also features a made-to-order kitchen that prepares freshly cooked items such as breakfast offerings, deli sandwiches, salads, wraps, and a variety of specialty beverages.
All 10 employees at the Woodland Hills store will be laid off, effective March 10, as per a California WARN notice issued last week. Amazon is currently working to find alternative roles within the company for these employees, potentially at other nearby Amazon operations sites. In addition to its Amazon Go stores, the company’s grocery brand, Amazon Fresh, has surpassed the 50-store mark following a turbulent start, while Whole Foods, the specialty grocer acquired by Amazon in 2017, has experienced steady growth in recent years.
Despite facing challenges in its brick-and-mortar endeavors, Amazon’s Just Walk Out technology, which powers its stores, has gained traction in the wider retail industry. The company now offers this technology as a service to third-party retailers and has implemented it in over 200 locations across the U.S., U.K., Australia, and Canada. This technology allows customers to shop and pay for items without the need for traditional checkout processes, enhancing the overall shopping experience for consumers.
In conclusion, while Amazon has faced setbacks in its physical retail operations, the company remains committed to innovation and adaptation in the ever-evolving retail landscape. The closure of the Amazon Go store in Woodland Hills is part of a larger strategic reassessment of the company’s brick-and-mortar presence, as it continues to explore new opportunities and technologies to better serve its customers and drive growth in the retail sector.
