Amazon Shifts Grocery Strategy: Closes Fresh Stores, Expands Whole Foods and Delivery
Amazon (AMZN) shares rose 2% Tuesday following its announcement to shutter Amazon Fresh and Amazon Go physical stores. The move signals a strategic pivot toward delivery services and Whole Foods expansion, with plans to open 100+ new locations. AMZN stock has gained 6% year-to-date in 2026.
Analysts remain bullish, with price targets ranging from $244 to $340. Cantor Fitzgerald maintains an Overweight rating ($260 target), while Wedbush and BofA Securities endorse Buy ratings. The average $294.45 target implies 25.65% upside potential from current levels.
"We haven’t created a distinctive enough grocery experience for large-scale expansion," Amazon stated, underscoring its focus on optimizing the economic model. The decision contrasts with rival Walmart’s (WMT) brick-and-mortar dominance but aligns with Amazon’s e-commerce strengths.
