Amazon is abruptly winding down its experiment with physical grocery stores — a shift that will shutter all Amazon Fresh and Amazon Go supermarkets across the United States, including the Long Island outlets in East Setauket and Oceanside.
The decision, announced Tuesday by the Seattle-based retail giant, marks a major reorganization of Amazon’s grocery strategy, reflecting challenges in translating its digital dominance into sustained success for in-person grocery retail.
Nationwide Shutdown — What’s Happening
Amazon confirmed it will close all 57 Amazon Fresh supermarkets and 15 Amazon Go convenience stores in the U.S. as part of a broader strategic shift. The closures will occur rapidly, with many stores expected to cease operations by early February. California locations may remain open longer due to state labor notification requirements.
The Long Island Amazon Fresh supermarkets — once seen as heralds of next-generation grocery shopping — are among those affected. The East Setauket store, which opened in October 2024 amid long lines and local enthusiasm, and the Oceanside location that opened in 2022 will both close.
Beachhead efforts on Long Island already saw another Fresh supermarket in Plainview shutter last summer less than a year after its debut.
Why Amazon is Closing Stores
In public statements, Amazon framed the closures as the result of evolving consumer preferences and the company’s desire to focus resources where they can have the most impact. The retailer emphasized the growth of online grocery delivery, available in thousands of U.S. cities, and the continued expansion of its Whole Foods Market chain.
According to Amazon, while its branded grocery stores generated encouraging signals, they did not yet produce the “distinctive customer experience with the right economic model” needed for large-scale growth. Some existing store locations are expected to be converted into Whole Foods outlets, as the company shifts its physical-store focus.
Whole Foods, acquired by Amazon in 2017, is slated for even more expansion, with plans to open more than 100 new stores — including smaller “Daily Shop” formats tailored to urban and convenience-oriented grocery trips.
What It Means for Shoppers and Workers
For Long Island residents who adopted Amazon Fresh as a convenient alternative to traditional supermarkets, the closures will mean reconsidering where they buy fresh produce, pantry staples, and everyday groceries. While Amazon’s online grocery delivery service will continue operating where available, the loss of physical stores removes another local retail option.
Amazon has said it will work with impacted employees to help them find new roles within the company where possible, including at Whole Foods or in fulfillment and delivery operations, but specific details on worker transitions remain limited.
The Ebb and Flow of Grocery Retail
Amazon’s departure from brick-and-mortar Fresh stores reflects broader pressures in the grocery industry, where tight margins, entrenched competition and changing consumer habits make physical grocery retail a challenging business. On Long Island, grocers ranging from discounters to specialty markets continue to open and adapt to shifting demand.
For now, Amazon’s exit underscores how even some of the world’s most powerful retailers must recalibrate in the face of evolving shopper preferences — a story that Long Island residents felt firsthand.