According to Amazon CEO Andy Jassy, the Company has halted expansion of Amazon Fresh and other store formats in order to redefine strategy and to select an appropriate brick-and-mortar format that generates an acceptable return on investment. 

It is clear to observers that Amazon.com Inc. has failed to make a major impact on grocery retail against established competition from major chains including Kroger and Walmart.  Although Whole Foods Market is holding its own in the up-market segment, it faces competition from chains including Wegman’s, the Harris Teeter subsidiary of Kroger and regional stores offering organic local and gourmet foods, selected produce and prepared meals in a “destination environment” including wine bars and cafes.

During the fourth quarter of FY 2022, Amazon took a $720 million charge from closing some stores and writing down assets.

The situation may become more complicated for Amazon as consumers return to traditional brick-and-mortar shopping and take advantage of pick-up options now offered by most chains.