Amazon shutters 4 Fresh stores in Southern California as grocery strategy keeps shifting

Core Insights - Amazon is closing four more Fresh supermarkets in Southern California as part of its strategic focus on Whole Foods and delivery services [1][3] - The closures follow previous shutdowns of four other U.S. locations, indicating a trend in Amazon's grocery strategy [1][3] Store Closures - The specific locations being closed include stores in Mission Viejo, La Habra, and Whittier, California [3] - Amazon has confirmed that affected employees will receive severance packages and assistance in finding new roles within the company [2] Strategic Evaluation - Amazon regularly assesses its store portfolio, which can result in openings, relocations, or closures [4] - The company currently operates over 60 Fresh stores in the U.S. and has previously removed its "Just Walk Out" technology from these locations [4] Historical Context - Amazon launched Amazon Fresh in 2007 and acquired Whole Foods for $13.7 billion in 2017, marking its significant investment in the grocery sector [5] - The Fresh grocery chain was debuted in 2020, but its expansion has faced challenges due to cost-cutting measures and economic pressures [6] Future Plans - Despite the closures, Amazon continues to innovate in the grocery sector, including launching a new "price-conscious" grocery brand and expanding same-day delivery services [7] - The company maintains a strong presence with 500 Whole Foods locations and has introduced mini "daily shop" stores in New York City [7] Sales Performance - Amazon executives have reported success in online grocery sales of everyday essentials, indicating a positive outlook for the grocery segment [8]