Home / Business and Economy / Amazon Fresh Stores Closing: SoCal Workers Impacted
Amazon Fresh Stores Closing: SoCal Workers Impacted
5 Feb
Summary
- Amazon is closing its physical Fresh and Go stores nationwide.
- Approximately 3,339 employees in Southern California are affected.
- Amazon settled an FTC lawsuit, agreeing to millions in customer refunds.
Amazon is closing its physical Amazon Fresh and Amazon Go stores nationwide, impacting thousands of workers. In Southern California, filings reveal that approximately 3,339 employees are affected by the closure of 19 Amazon Fresh locations in cities such as Long Beach and Los Angeles. These "public-facing operations" are expected to halt on March 13. The company stated the decision was due to not yet creating a "truly distinctive customer experience" with the right economic model for large-scale expansion.
Amazon announced in January its plan to shutter these physical grocery stores, with a focus on expanding its Whole Foods Market brand. The company plans to invest in opening over 100 new Whole Foods Market stores in the coming years, noting customers increasingly choose Whole Foods for everyday shopping. Amazon has not yet confirmed if any of the affected Southern California Amazon Fresh stores will be converted into Whole Foods Market locations, stating each site is under assessment.
This nationwide store closure also comes as Amazon agreed to refund millions of customers following a settlement with the Federal Trade Commission. The lawsuit addressed issues concerning Amazon Prime subscriptions and their cancellation processes. The company is reportedly working to help impacted employees find new roles within Amazon or provide severance packages.
