Amazon Fresh’s closure of four Southern California stores—Mission Viejo, La Verne, La Habra, and Whittier—marks another significant contraction in the company’s brick-and-mortar grocery footprint.
These closures, announced in October 2025, reflect Amazon’s ongoing assessment of store performance in an increasingly competitive retail environment and signal a broader strategic shift in how the e-commerce giant approaches physical grocery retail.
Performance Assessment and Strategic Rationale
Amazon cited its regular portfolio evaluation process as the driving force behind the closures. Amazon spokesperson Griffin Buch stated that “certain locations work better than others,” and following a comprehensive assessment, the company made the strategic decision to shutter these four stores.
The company emphasized that it remains committed to grocery operations but recognizes that performance varies significantly across its locations. Some stores have proven unable to sustain profitability under current market conditions, leading to the periodic reassessment and optimization of Amazon’s physical retail network.
Accelerating Contraction
These Southern California closures continue a pattern of recent store eliminations. In recent months, Amazon has closed locations in Washington, Virginia, New York, and Los Angeles, in addition to 14 Amazon Fresh stores in the United Kingdom.
The UK closures represent a near-total withdrawal from the British market, with remaining operations converted to Whole Foods locations. With only 60 Amazon Fresh stores remaining in the United States following these closures, the chain has contracted dramatically from its ambitions just two years earlier.
Shifting Grocery Strategy
The closures underscore Amazon’s pivot away from standalone grocery stores toward a more integrated approach centered on Whole Foods Market and delivery-focused services. Rather than investing heavily in physical Amazon Fresh locations, the company is channeling resources into its expanding delivery network and private-label initiatives.
Amazon recently expanded its Amazon Fresh Delivery service to 2,300 new U.S. cities and launched Amazon Grocery, a new price-conscious food product line featuring pantry staples, dairy, and produce.
This strategic reorientation reflects lessons learned from Amazon’s decade-long investment in physical grocery retail. The company’s grocery ambitions began with the launch of the Amazon Fresh delivery service in 2007, continued through the $13.7 billion acquisition of Whole Foods Market in 2017, and accelerated with store openings in 2022.
However, budget constraints and operational challenges caused the physical expansion to stall in 2023, prompting leadership to reconsider the capital-intensive model of standalone grocery stores.
Employee and Community Impact
Amazon stated it will work with affected employees to help them transition to new roles within the company when possible. The company indicated that it would provide support during this transition process, though specific details regarding severance packages and relocation assistance were not disclosed in initial announcements.
The closures will eliminate access to Amazon Fresh grocery offerings for residents in these four Southern California communities, though most shoppers have alternative retailers and delivery services available in their areas.
Ongoing Investment in Delivery and Integration
Despite the store closures, Amazon continues to invest in its grocery business through alternative channels. The company expanded its Amazon Fresh Delivery service to cover 2,300 U.S. cities and remains focused on integrating Whole Foods Market more deeply into its overall retail strategy.
Amazon has also opened new locations in select markets, including Philadelphia and Silver Spring, Maryland, suggesting that while standalone Amazon Fresh stores are contracting, the company’s broader grocery ambitions persist.
Future Closures?
Amazon emphasized that it continuously assesses its brick-and-mortar portfolio, a process that can lead to “dynamic periods with stores opening and closing in different locations.” This statement suggests that future closures or relocations may occur as the company fine-tunes its physical retail footprint.
For now, the four Southern California closures represent another chapter in Amazon’s evolving relationship with physical grocery retail, reflecting broader industry trends as technology-focused retailers seek to balance innovation with profitability in an increasingly challenging marketplace.