Amazon has been making major cuts across its business in recent years, from laying off thousands of corporate roles to closing physical stores.
Now, the retail giant is preparing another change to its grocery operations that could affect how some consumers shop for their everyday essentials.
The shift comes just three years after Amazon expanded its grocery partnerships, as the company continues to streamline its operations. This raises questions about which retailers will be affected and what the changes could mean for shoppers.
Amazon will phase out individual grocery partner storefronts
Amazon (AMZN) is ending its current third-party grocery storefront partnership model across several countries, roughly three years after expanding access to grocery delivery from local and specialty retailers through Amazon.com.
The change is intended to create a more consistent shopping experience by moving away from individual grocery partner storefronts and toward other forms of collaboration. Amazon also said this decision was driven by customer feedback.
“We’re always evaluating how we can best serve our grocery customers,” an Amazon spokesperson told Grocery Dive. “In response to customer feedback, we’re simplifying the shopping experience and evolving how we work with our grocery partners across several countries, transitioning in the coming months from individual grocery partner storefronts to collaborating in other ways.”
Amazon said it will notify customers in advance of any changes to their shopping experience or closures. However, the company has not specified which grocery partners will be affected or provided a detailed timeline for the transition.
For customers, the impact will depend on which retailers and services are ultimately affected. The end of the individual storefront model does not, by itself, mean Amazon is discontinuing its broader grocery delivery operations.
Amazon said it is working with grocery partners in the U.S. and internationally to explore alternative arrangements. These include hosting Amazon Lockers and return points at physical retail locations, placing Amazon operations alongside retailers’ stores or warehouses, and using Amazon Web Services to support retailers’ e-commerce, supply chain, and data analytics operations.
The company continues to offer same-day grocery delivery in more than 2,300 U.S. cities and towns, as well as in parts of Japan and the U.K., with plans to further expand its grocery delivery offerings.
The transition will also affect some employees. Amazon said it will try to find roles within the company for workers affected by the changes.
Amazon cuts its current third-party grocery storefront partnership model.
Amazon previously expanded grocery access beyond Prime members
In November 2023, Amazon confirmed that customers nationwide could access Amazon Fresh grocery delivery and free pickup without a Prime membership, expanding access to its grocery services.
“This marks another step in Amazon’s journey to build a best-in-class grocery shopping experience offering incredible selection, value, and convenience,” said Amazon Fresh VP Claire Peters in the announcement at the time.
Amazon also allows customers to order from local grocery and specialty retailers through Amazon.com. Participating businesses included Bristol Farms, Cardenas Markets, Pet Food Express, Weis Markets, and Save Mart, among others.
Customers could also access grocery delivery and free pickup from Whole Foods Market without a Prime membership under the expanded offering.
The third-party storefront model allowed participating retailers to maintain individual shopping experiences on Amazon, including their own delivery methods, fees, and checkout processes.
Ending that model represents a change in how Amazon connects shoppers with outside grocery retailers.
Amazon continues to reshape its retail operations
The grocery partnership change comes amid a broader effort by Amazon to adjust its retail operations, reduce overlap between services, and invest in different ways to serve customers.
In October 2024, CNBC reported Amazon would shut down Amazon Today, a same-day delivery service that allowed customers to order products directly from local brick-and-mortar retail stores and shopping malls. The service was discontinued by the beginning of 2025 as Amazon sought to reduce overlap with its existing same-day and one-day delivery networks.
Here’s some of my previous coverage on Retail News:
- Walmart launches new membership deal, offers nearly $100 in savings
- Target makes an in-store change designed to make finding help easier
- Walmart’s big bet on robots hits a major roadblock
In January 2026, Amazon revealed that it would close its Amazon Go and Amazon Fresh physical stores and convert various locations into Whole Foods Market stores. The decision marked another change to the company’s approach to physical grocery retail.
Amazon has also been investing in automation, robotics, and artificial intelligence as it adjusts its operations and delivery networks.
Despite the changes, Amazon said it will continue operating its Amazon Fresh service and testing new ways to improve the grocery shopping experience.
For customers, the immediate question is which third-party grocery storefronts will be affected and what alternatives will be available.
Amazon has not yet provided a complete list of impacted retailers, leaving the specific effects of the transition unclear as the company works with its grocery partners on the next phase of its strategy.
Related: Walmart launches new membership deal, offers nearly $100 in savings
